With the U.S. stock market up over 20% last year investors have to wonder about the long term visibility of the markets. The Shiller P/E ratio is currently around 34 times. This is twice as high as the average historical ratio of 16.82 times. The U.S. isn't the only place where investors are shrugging off high valuations and pushing the stock up higher. Stock indexes in other … [Read more...]
Tail Risk in the Market
The U.S. stock market has started the year with a 6% decline in just the first 6 trading days. In Canada the the S&P/TSX Composite index has technically entered into a bear market, which means it has fallen more than 20% from its peak. If that doesn't concern investors then some recent comments from the global strategist at Societe Generale might do the trick … [Read more...]
Ferrari (RACE) Stock: Set to Decline Further
Ferrari NV (NYSE: RACE) Ferrari's stock is overpriced and set to under-deliver. I know, that's not the type of statement that you would expect to see surrounding a stock that represents one of the most popular automobiles on the planet. However, it's the truth. The reality is that from the time of its IPO, RACE was incredibly overpriced. Unfortunately, it will take some time … [Read more...]
