The dubious charms of cheap equities
Article Abstract:
The strong rise in bond prices in the US has led to the ratio of long bond yields to the earnings yield on the S&P500 falling to very low levels. However, it cannot necessarily be assumed that equity prices will now begin to rise sharply. The price-earings ratio on the S&P500 is more than 24, a level which is not normally considered to indicate a good time to purchase equities. Furthermore, there may be a number of reasons why lower equity valuations are appropriate. These include the fact that earnings growth may not live up to expectations.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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Very stylish
Article Abstract:
The FTSE International UK Growth and Value Indices are new stock indices measuring growth and value have been developed with the Frank Russell Company. The indices aim to track two styles of investment which have been in use over a long period. The net asset value ratio has been used to measure stock performance in terms of value or growth, and this method has its critics. Value investing has tended to give better returns since 1986, though the difference is less pronounced is 1993 is excluded.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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Errors that cause the FTSE to overreact
Article Abstract:
Factors affecting the FTSE stock price index are examined in detail. including the phenomenon of overshooting.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 2001
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