P/E ratio

Uncategorized, Weekly Update

TimingCube – The Simplicity of Investing


Published December 29, 2017

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There is a certain beauty to how we invest here at TimingCube. We buy the stock market or sell it. That’s all! With that approach we do not need to read any tea leaves regarding stock valuation, whether the Federal Reserve is going to ramp interest rates too fast or too slow, whether the economy will grow more or less than expected. We simply own the stock market when it is rising and sell it when it is falling. (more…)

Uncategorized, Weekly Update

Stocks Outside the U.S. Blast Off


Published December 15, 2017

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Outside the U.S. the post-financial crisis rally has been a halting affair, occurring in two major steps higher. Unlike the U.S., each step was greeted with some misgivings as Europe wrestled with its new currency and European Union financial structure while China’s economy digested a massive wave of growth in the prior decade. (more…)

Uncategorized, Weekly Update

Where the Stock Market Might Be Headed Next


Published November 17, 2017

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We thought the outlook below from Delta Investments provided a good overview of the factors supporting the stock market. Enjoy!

Our 2018 S&P 500 Index outlook is up. If the P/E remains constant as it has for the past two years, the S&P 500 should be up in-line with earnings or about 11%.

The following ten factors support our 2018 bullish investment thesis: (more…)

Weekly Update

Long-term Models and Metrics Can Lead to Misreading the Market


Published August 4, 2017

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There are a number of folks talking about how overvalued this stock market is. Many of them refer to the metrics, indicators, and models discussed below. Read through this analysis from Jill Mislinski and we will return for some perspective at the end.

“Here is a summary of the four market valuation indicators we update on a monthly basis.
• The Crestmont Research P/E Ratio
• The cyclical P/E ratio using the trailing 10-year earnings as the divisor
• The Q Ratio, which is the total price of the market divided by its replacement cost
• The relationship of the S&P Composite price to a regression trendline

(more…)