by Gary Gordon | Jun 30, 2021
Is the stock bubble making investors wealthy? Temporarily. Consider household equity exposure relative to disposable personal income. Investors have more skin in the equity game than they ever have before. What that means is that, with the S&P 500 sitting atop a...
by Gary Gordon | Jun 24, 2021
Theoretically, the extent of corporate success (e.g., sales, profits, cash flow, financial health, etc.) propels stock prices. That is no longer the case. For example, one can examine the price-to-sales metric (P/S) by S&P 500 decile. Low valuation deciles might...
by Gary Gordon | Jun 16, 2021
Christian Bale played hedge fund manager Michael Burry in The Big Short. The actor’s portrayal of an eccentric loner with genius-like qualities was downright riveting. Of course, it was Burry, not Bale, who anticipated the implosion of the housing balloon. It...
by Gary Gordon | Jun 9, 2021
You hear the stories in everyday life. A neighbor receives $75,000 up and above an astronomical listing price for a home. A friend boasts about making a killing in a crypto like Dogecoin or a meme stock like AMC Entertainment Holdings (AMC). The primary reason for the...
by Gary Gordon | Jun 2, 2021
Is the stock market overvalued, undervalued, or fairly valued? One of the most popular metrics for making that call is the cyclically-adjusted price-to-earnings (CAPE) ratio. The CAPE ratio, also known as P/E10, has averaged 17.0 since the 1880s. It reached an epic...
