Expectations Investing: Reading Stock Prices for Better Returns by Alfred Rappaport, Michael J. Mauboussin

Expectations Investing: Reading Stock Prices for Better Returns Alfred Rappaport, Michael J. Mauboussin ebook
Publisher: Harvard Business Review Press
ISBN: 9781591391272
Page: 256
Format: pdf

Steady growth in hiring last month sent the stock market sharply higher Friday. Monetary stimulus tools such as the Fed's USD85 billion monthly bond-buying program flood the economy with liquidity to spur recovery and keep borrowing costs low, a combination that sends stock prices rising as a side effect. Employers last month was just what investors wanted. Good explanation of some differences between growth and dividend stocks, much better than a lot of other stuff I've read that just looks at charts and not the reasons behind them. Here are (The Brooklyn Investor); The tenuous link between economic growth and future equity returns. Last week fell by 12,000 to 334,000, compared to expectations for a decline of 1,000 to 345,000. The central bank is buying $85 billion of bonds every month to keep interest rates low and encourage borrowing, spending and investing in riskier assets like stocks. If a company pays a dividend equivalent to a 3% yield, management is essentially telling investors they can't find better investments within the company that will return greater than 3%. I'm curious though, are there any .. Top-line The sustainability of profit margins (read James Montier's “What Goes Up Must Come Down”), already in record territory, bears close watching. €�People need to ratchet down Market-cap-weighted indices mirror the market but their “Achilles' heel” is that the most money is allocated to the most-loved companies with the highest stock price, or the stocks with the greatest growth expectations and loftiest valuations, he asserted. (June 7, 2013, by Mel Gourmet) MORE · Read all 1 comments · Post a comment. Arnott outlined an “expectations gap” among investors who are looking for stock returns of 12% a year and bond returns of 9% annually based on historical performance. Whether the pullback is merely a hiccup in the market's continued advance or the start of something more will, in large part, depend on the economic news flow and, in turn, the response of central bankers. Folks have to match expectations with reality. The Department of Labor said the number of people who filed for unemployment assistance in the U.S.