Wall Street: adding value?
Article Abstract:
US gross domestic product (GDP) is likely to grow modestly in 1996 and share prices may not rise faster than GDP. Share prices have risen for a number of reasons such as merger activity, productivity growth, and less pressure from wages. Some analysts foresee increased wage pressure which could affect earnings for companies as a whole, while others see profits of specific companies boosted by continued restructuring. Low rates of interest and low economic growth is the best the market can hope for though this is likely to affect corporate earnings.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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Sentiment and value on Wall Street
Article Abstract:
There are different views on valuations of US share prices. Pessimists look at low dividend yields and price to asset ratios, and optimists emphasise earnings yields and short-term rates of interest. The price earnings ratio can be a useful tool though it may also be affected by distortions, according to ING Barings' Michael Howell. There are different components within this ratio, and examining the components can help investors understand share price movements.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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Second wind
Article Abstract:
The US economic slowdown of mid 1995 may not last long. A revival is expected by some analysts by 4th qtr 1995. The US housing market is performing well, and gross domestic product (GDP) could achieve a growth rate of 2.5% by the end of 1995. The Dow Jones Industrial Average has almost maintained the high level set in Jul 1995 and technology shares are reviving following a periodof profit-taking which occurred during the last few days of Jul 1995.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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