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The price-earnings ratio, also known as the P/E ratio, P/E, or PER, is the ratio of a company’s share (stock) price to the company’s earnings per share. The ratio is used for valuing companies and to find out whether they are overvalued or undervalued. This link gives you both a short-term and long-term perspective on […]

Wall Street’s most widely watched gauge of the yield curve’s slope, the spread between the 2-year Treasury note yield and the 10-year inverted Wednesday morning, flashing the clearest signal to date that the U.S. is set to face an economic recession, but that doesn’t have to mean doom and gloom for stock investors. Click here:

This is the final part of a three-part series on recessions, called Recessionomics. To recap, in Part I, we learned that the yield curve is an unreliable predictor of a recession. In Part II, we found unemployment is a better indicator that a recession is present rather than a predictive tool. In this article, we will look closely at how stock prices

The Shiller P/E Index is one measure of the market’s overall value. Click here: https://www.gurufocus.com/shiller-PE.php

Long-term investment success often depends on being in the right economic sector of the market. For passive investors a basket of companies in sectors performing at a growth level higher than the economy as a whole is important. One of the best sources of sector analysis is provided by Fidelity Investments, an investment firm that

The repo market is an important source of funds for large financial institutions in the non-depository banking sector, which has grown to rival the traditional depository banking sector in size. Large institutional investors such as money market mutual funds lend money to financial institutions such as investment banks, either in exchange for (or secured by)

The stock market’s 10-year return potential is better now than it was at the end of 2019. The improvement traces to a reduction in the share of households’ financial assets that are invested in stocks. Household equity allocation is a contrarian indicator, inversely correlated with the stock market’s return over the subsequent 10 years. Click