Salient to Investors: P/E ratios among the 50 largest companies in the S&P 500 Index deviate from the mean by an average 22%, nearly the lowest on record since 1990. An average of 380 Index companies rose in each of the last 5 years, versus 307 in the 1990s. In 2007,
READ MORE... →Salient to Investors: Dan Matjila at The Public Investment Corp. expects betting on developing South Africa’s power generation, roads, banks, communications and education will boost its economy and improve investment returns. Matjila said increasing investments in developmental projects, such as renewable energy, and in the rest of Africa would increase
READ MORE... →Salient to Investors: Alexander Antipov at Veles Capital said investors are cautiously optimistic as there are talks and there have been no new sanctions on Russia. Antipov said Russian equities are very cheap, and long-term investors will make serious profits when the Ukraine crisis is solved and things return to
READ MORE... →Salient to Investors: Analysing what parts of the market have lots of ground to make up to reclaim highs is a good way to gauge how much more the market can rise or fall. The NYSE Arca Airline Index is 59 percent below its peak. The S&P 500 Information Technology
READ MORE... →Salient to Investors: The value of equities globally is at a record $66 trillion versus $25 trillion in March 2009 and $63 trillion at the 2007 peak. The US stock rally is approaching the dot-com bubble in terms of speed, but not in valuations – at 16.8x estimated earnings versus 26x at
READ MORE... →Salient to Investors: The market looks more and more like the dot-com bubble market except for valuations: 19x now versus near 30x then. Widespread gains now compare with the concentration in computer shares back then. The S&P 500 Equal Weight Index has risen at an annualized 28% rate since 2009,
READ MORE... →Salient to Investors: Robert Shiller at Yale said stocks and bonds are highly priced and may be joined by real estate. Jeremy Siegel at Wharton expects the bull market to continue, possibly reaching Dow 18,000 or higher by the end of 2014. Siegel said bull markets climb the wall of
READ MORE... →Salient to Investors: Barry Ritholtz writes: Rarely have conditions for market gains been so promising at a time when investor psychology has been so negative. Only 7% in a Gallup poll were aware of the S&P 500’s 30% increase in 2013, while more than 50% would put new cash into
READ MORE... →Salient to Investors: Yngve Slyngstad at Norges Bank Investment Management, Norway’s sovereign wealth fund, said: They are gradually picking up some new markets but at a less rapid pace than at the beginning of 2014. At the end of June, 9.9% of the fund’s stocks and 13.4% of its bonds
READ MORE... →Salient to Investors: The OMX Copenhagen 20 Index: Returned 21% (18% in US dollars) in 2014 including dividends – the best benchmark gain in 24 developed markets – versus 9.6% for the S&P 500. Returned 280% (299% in US dollars) including dividends since its low in March 2009 versus 229% for
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