Archive of posts filed under the Strategy category.

European Stocks Are Attractively Valued Now: Chart

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European equities are attractive relative to their US peers based on cyclically-adjusted price-to-earnings ratio (CAPE) according to an article by Rory Bateman at Schroders. The following chart shows the comparison of valuations since 1982: Click to enlarge Source: Can European equities play catch-up in Q4?, Schroders A short excerpt from the above article: In summary, we are encouraged by …

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Biotech Stocks Are Not For The Faint-Hearted

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The biotech sector is soaring this year with the benchmark NYSE Arca Biotechnology Index up by over 27% YTD as of the end of September. Investors’ attraction towards biotech stocks shows no signs of showing as evidenced by many successful IPOs being launched on a weekly basis and also trading volumes. In addition, one of the top viewed pages …

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U.S vs. Canadian Financials: Which Is Better?

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The U.S. financial sector is similar to the Canadian financial sector in some ways but different in others. For example, the banking industry in Canada is dominated by just 5 or 6 major banks forming a nice oligopoly. However it is not the case south of the Canadian border. From the standpoint of equity returns, …

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Foreign Stocks To Watch: Money-Laundering Danske and Declining Deutsche Bank

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Foreign stocks in the news and to watch for the following week are listed below. Additional links for items of interest are also included. Denmark’s Danske Bank(DNKEY) is involved in a massive money-laundering fraud at its Estonian branch. The CEO quit and the stock may suffer for months to come. The German government is in …

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U.S. Stocks Are Overvalued based on Price to Sales Ratio: Chart

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U.S. equities are reaching record highs and some investors are wondering how long the current bull market will last. The S&P 500 is up by over 9% on price basis YTD. Currently the P/E ratio of the index is 25.38. Based on the price to sales ratio stocks are reaching the levels last reached during …

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