Dow Jones

  • 09 Mar
    Want To Get The Best U.S. Companies At 50% Off? You Might Get That Chance Soon

    Want To Get The Best U.S. Companies At 50% Off? You Might Get That Chance Soon

    • A look at the DJIA from a valuation perspective will give us a good indication of future returns.
    • I’ll also give a cyclical perspective on stocks by looking at their CAPE ratios.
    • As well as explain how valuations usually contract and expand alongside earnings.



    Introduction

    Two days ago, I discussed how valuations may be the biggest risk to stocks at this moment. Building on that, I want to go through the Dow Jones Industrial Average (DJIA) and discuss the valuations there.

    The DJIA, unlike the S&P 500, is an arithmetic average weighted index and it is far less industrial than it was when it was formed in 1885. Nevertheless, it still gives a good impression of how the American economy is doing.

    What I want to build on are valuations.

    More →

  • 08 Feb
    Dow 60,000 In The Next 10 Years?!?

    Dow 60,000 In The Next 10 Years?!?

    • Earnings estimations tell us that the S&P 500 will reach 6,471 and the Dow 59,000 points in 10 years.
    • A bad case scenario with current earnings growth would see the S&P 500 at 3,589 points while the Dow, which just passed 20,000 points, would be at 31,415 points.
    • We’ll compare a short-term and a long-term perspective on earnings.
    • Only two times in history have valuations grown alongside earnings, and the results are extremely indicative.

    Introduction

    Earnings are the oxygen of our investments. Therefore, it’s extremely important to keep an eye on what is going on.

    A short-term and long-term perspective on recent earnings reports is going to tell us how to position ourselves for 2017 and beyond. More →

  • 23 Dec
    The Dow To Hit 20,000 Alongside A Strong Dollar, Time To Be Greedy?

    The Dow To Hit 20,000 Alongside A Strong Dollar, Time To Be Greedy?

    • Investors can expect a nominal return from stocks of 4.3% per year going forward.
    • The story looks far different for speculators. The strong dollar and higher debt costs should weigh on the economy and stocks.
    • Specific sectors and international diversification offer a better risk reward situation.

    Introduction

    The Dow Jones is flirting with 20,000 points, and it’s possible that by the time you’re reading this, it has already crossed the mark.

    In addition to the Dow reaching all-time highs, the dollar index has also reached new highs for the decade. More →