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.
Category: Economics
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.”
Why market fall after Q2 2024 earning report?
Except for a few companies, such as Apple, Meta, PayPal, Shopify, and MercadoLibre , most of the US listed companies have Q2 earning reports were generally poor. What’s more important: Most companies’ financial forecasts are disappointing, exacerbating market concerns, which is more lethal to stock prices than the results of quarterly earnings reports that have already occurred.
Sahm Rule, a 100% accurate recession indicator, was triggered
With 11 recessions occurring since 1950, Sahm Rule backtest is 100% accurate and is a reportable recession indicator.
Powerful and persuasive Buffett indicator, whether market is overheat
If the “Buffett indicator” is less than 50%, it means that the stock market is seriously undervalued, between 50% and 75% it is slightly undervalued, between 75% and 90% it is reasonably valued, between 90% and 115% it is slightly overvalued, and high At 115%, it is seriously overvalued.
Fintech’s valuation plummeted and current dilemma
Fintech is no longer a super new blue ocean in the technology and financial circles ten years ago.
U.S. stocks have experienced zero returns twice in more than a decade due to inflation
U.S. stocks have experienced zero returns twice in more than a decade due to inflation – 1968 to 1982 and 1964 to 1981
Why are only US stocks the most valuable for long-term investment?
The factors that many investors worry about listed in this article will not cause too much harm to the long-term investment value of US stocks.