Eurozone and Australian stocks are cheap now based on Shiller Price to Earnings (P/E) ratio. However US stocks look expensive at current levels. Click to enlarge Source: The Trump bump and shares – short-term risks, but five reasons for optimism by Dr Shane Oliver, AMP Capital, May 23, 2017
The S&P 500 closed at 2,402.32 on price basis today. Year-to-date the index is up a decent 7.30%. In the past 10 years it has grown by 4.81%. Over the long run the index has beat inflation. The Monthly Real Return of S&P 500 from 1881 thru March, 2017 is shown below: Click to enlarge …
Continue reading ‘Monthly Real S&P 500 Price from 1881 thru March 2017: Chart’ »
U.S. stocks have outperformed international stocks in the past few years. Foreign stocks look attractive at current levels while their American peers look expensive. According to an article by Jurrien Timmer at Fidelity, since the Global Financial Crisis peak in March 2007 thru April 2017 the S&P 500 has returned 282% in total returns compared to …
Continue reading ‘Valuation Ratio: US vs. International Developed and Emerging Market Stocks’ »
The US corporate tax rate has stayed at the 40% rate for many years now. But in many developed countries the tax rate has been been declining in the past few years as shown in the chart below: Click to tn enlarge Source: Charles Schwab, KPMG data as of 4/26/2017. The U.S. statutory corporate …
Continue reading ‘Corporate Tax Rates in Select Developed Countries: Chart’ »
US stocks continue to remain elevated since the beginning of the year and the elections. Stocks in certain sectors such as financials have soared substantially since the elections.This week the tech-heavy NASDAQ crossed the record 6,000 mark. Despite the superb performance of US equities, investors need to be cautious since the P/E ratio of US stocks …
Continue reading ‘US Stocks Are Highly Valued Relative to Historical Average: Chart’ »