How big is the market? S&P 500 Market Cap. Source: Bloomberg That depends on what you mean by the market. The US stock market is worth about $20 trillion. That’s the value if you add up all the shares traded times their market price – the market cap of the S&P 500. When you divide the market’s total value by the total earnings (and losses) produced by those companies, you get the market’s PE ratio—a basic measure [...]
Is it a bull market or a bear market? Source: Wikipedia It all depends on your perspective. Like the famous rabbit-duck illusion. People who want to see a rabbit see long ears, a split nose, and a soft face. Folks who want to see a duck see a split bill, a tongue, and a bright eye. There’s no clear answer. The same thing could be said about the market right now. Those who want to see a [...]
Photo: Kevin Rosseel. Source: Morguefile Hey: got a tip? I’m often asked for investment advice. People are usually looking for something new—an overlooked equity good for a quick buck. But giving out random tips is contrary to my professional principles. Investment advice is like medical or legal advice: specific instructions should be tailored to specific situations. It may be fine for a doctor to say, “Get more exercise,” but it maybe not if the person just had [...]
What does the Tech M&A boom say about the future? Facebook and Instagram; Dell and Wyse; Microsoft and the AOL patents—what do these things have in common? They were all announced in the past two weeks and they all cost a billion dollars. The technology industry has lots of cash to deploy. But they also show us where tech is going. Sometimes the deals make sense: Facebook’s mobile app is lousy; the Instagram app has been growing, [...]
Today’s durable goods number was lousy, but here’s the overall chart:Total durable goods orders remain in an uptrend. Let’s keep an eye on this one, though. We’re 40% above the trough of March of ’09, and the uptrend from before was broken in May of ’08. Then it fell off the cliff.