A Closer Look at CAPEFriday 24 February 2017
Many of the value investment blogs have been complaining that the CAPE on the S&P 500 is outrageously high. Clearly, the index is no longer cheap, and when I checked two weeks ago, I was concerned to see that its median EV:sales was now above 3x. But neither am I convinced by some of the commentary on the extreme valuation of the CAPE.
Some investors share an optimistic belief that the new administration will
- spark the economy into a higher growth trajectory, on the back of the...
IPOs gearing up?Friday 10 February 2017
News about three IPOs this week reminded me that one of my signals of an approaching bull market climax is an increase in volume and a decrease in quality of IPOs. The three IPOs have very little in common:
Detsky Mir is the largest toys and children’s retailer in Russia. This week, it raised $355m, valuing the company at roughly $1bn, in a rare IPO on the Moscow stock exchange. It looks like confirmation that the Russian market has turned, although the real money was made buying 12...