Shiller CAPE Ratio is calculated by dividing the actual stock price adjusted for inflation by the average of the company’s inflation-adjusted earnings per share over a ten-year period
Category: Economics
US Taiwan stock comparison, market at historical highs
US Taiwan stock comparison, both are currently at all-time highs. On September 22nd, US stocks hit new all-time highs, with the S&P 500 closing at 6,693.75, the Dow Jones Industrial Average at 46,381.54, and the Nasdaq at 22,788.976, all achieving new intraday highs and record closes.
Indicators helps to interpret the direction of stock market and economic climate
After all, what indicators or data are based on science, rather than divination or astrology, are indeed helpful in predicting the direction of the U.S. stock market.
Apple’s Crisis Part 1: Apple Tariff Crisis Management Strategy Offers a Lesson for Business
Wall Street has given high praise to Apple’s strategy and the meticulous process used to handle the Apple Tariff Crisis, as well as the final results achieved.
Reciprocal tariff and forex impact to investors
The Forex fluctuations caused by the reciprocal tariffs initiated by Trump and the impact on countries around the world have caused the U.S. stock market to fall into a bear market. Major large-scale listed companies have experienced a sharp drop in stock prices of more than 20% due to reciprocal tariff and forex.
How crazy was dot-com bubble? Companies have risen like a phoenix from the ashes
During the dot-com bubble, the Nasdaq Composite rose nearly sevenfold, from 743 to a peak of 5,048. It will take 15 years, until April 24, 2015, to regain all the ground lost in the decline since 2000
High growth country generally have poor stock returns
In developing countries, high growth country, many profitable, large-scale, and monopolistic companies are state-owned or even unlisted companies. If companies that benefit from economic growth are not listed on the market and shared with the majority of shareholders, it will be difficult for the stock market to reflect the fruits of the country’s economic growth.
Irrational Exuberance Indicator
The Irrational Exuberance Indicator Greenspan is referring to is to measure the irrational valuation of the stock market by comparing the “difference” between stock yields (the inverse of the price-to-earnings ratio) and bond yields.
Economic crisis caused by overinvestment
AI now faces similar challenges, raising concerns about overinvestment. If investments are made too far ahead, companies that invest heavily in AI infrastructure may eventually face huge losses if they are unable to generate sufficient returns, just like WorldCom (later acquired by Verizon Communications, ticker: VZ). Same mistake.
Will Fed rate cut gurantee stock market rise?
An economic recession will indeed lead to a reduction in corporate income; as a company’s revenue decreases, the stock price will of course fall accordingly. In short, “cutting interest rates does not necessarily 100% make the stock market rise.”