• First Word
Wed March 9

We publish on a 4-day a week schedule Monday Tuesday Wednesday SKIP THURSDAY Friday STRATEGY: VALUATION NOT DEMANDING, BUT VISIBILITY STILL LACKING. EARNINGS YIELD IS 2.82% ABOVE 10-YR YIELD, THE HIGHEST IN 18 MONTHS AND VS 0.30% AVG SINCE 1980 _GLIMMERS: While buyers strike continues,...

When will see next variant? Maybe April 2022?  Stocks still go up even if bonds have a negative year
  • Factor Strategy
Tue December 21, 2021

Market Valuation

We use a residual income model to compute an intrinsic value for the market. This model considers forecasts for future earnings and for long-term earnings growth to estimate the equity risk premium for the S&P 500.We combine the equity risk premium with the risk-free rate to produce an equity yield,...

  • Signal from Noise
Wed July 3, 2019

How SaaS Removed Value Investing From Software

The valuations in the software sector known as Software as a Service, otherwise captured by the ungainly acronym SaaS, are said to be rich. Nobody likes to pay up, but value investors, in particular, are skinflints and balk at them. Salesforce. com (ticker: CRM), for example, trades at an enterprise...

  • Tom Lee's Equity Strategy
Fri June 28, 2019

Equity Valuation Support Strong; US Looks Inexpensive

If you don’t mind a little instability, U.S. equity investors really can’t complain about the first half of 2019. Sure, it was a little volatile and who likes that? But with a roughly 17% return, the year is on track to be one of the strongest years since 2009. Source:...