in dot-com bubble time, it’s still only 1997 for u.s. equities

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terrified that rallies in facebook, amazon.com and google portend a millennial catastrophe along the lines of the dot-com bust? relax. going by one doomsday clock, it’s only 1997 in bubble years.so says leuthold group in a study that plots today’s valuations against the salad days of internet mania. based on its model, which measures the s&p 500 index by six factors including earnings, dividends and cash flow, the minneapolis firm found that stocks currently trade at the multiple they first reached 20 years ago.that is, 1997, when there was still 2½ years and 60 percent to go in what became the longest bull market on record. while elevated multiples are usually associated with lackluster returns, leuthold’s study may provide a mild salve to investors at a time when everyone from the federal reserve to paul tudor jones are voicing concerns over equity valuations.“you’ve seen ceo, consumer confidence bouncing back, there is more interest in the stock market, but it’s still nothing like the late 1990s,” doug ramsey, leuthold’s chief investment officer, said by phone. “if cyclical conditions remain positive, this thing has got some room to melt up.”leuthold’s stu......

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