FILE PHOTO: The front facade of the New York Stock Exchange is seen in New York City, New York, U.S., June 26, 2020. REUTERS/Brendan McDermid
The Russell 1000 Value index .RLVTRI trades at almost 18 times earnings, up from 14 a year ago, and is up some 45% since late March. By comparison, the Russell 1000 Growth index .RLGTRI trades at a multiple of 31, up from 22, and has gained over 70% in the same period. Other arguments for a value resurgence have been fueled by signs of progress on a vaccine against COVID-19, which some investors believe could accelerate business reopenings and a return to in-person schooling across the United States.
That could take the S&P 500 as high as 3,700 by year-end and spur a rotation to value names, especially if the news flow regarding a vaccine continues to be encouraging, Goldman’s analysts said earlier this month. The index recently hovered near 3,500. “Valuation alone doesn’t drive stock prices. It’s the combination of valuation and improving fundamentals,” said Richard Bernstein, chief executive officer and chief investment officer at Richard Bernstein Advisors in New York.
Yet it also warns of “value traps” - stocks whose prices are falling faster than earnings are deteriorating. Such stocks have underperformed broader markets by four percentage points a year since 1997, the bank said.
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Real Estate Experts Confirm Having George Clooney Living In Attic Greatly Increases Property ValueLOS ANGELES—Saying there was no better investment than sheltering the A-list celebrity in a tight crawl space, a panel of top real estate experts agreed Friday that having actor and director George Clooney live in the attic of one’s home was a great way to boost its resale value. “An analysis of market trends clearly shows that a house is worth much more anytime George Clooney has been squatting in an unfinished upper level of the residence,” said real estate agent Suzanne Erazo, who added that homeowners can expect a 10% year-over-year rate of appreciation even if they simply lodge the Michael Clayton star within the eaves of a dwelling, occasionally allowing him to sneak down and steal scraps of food from the trash at night. “Conventional wisdom may say double-pane windows or granite countertops are the way to go, but those enhancements pale in comparison to the return on investment you get from having George Clooney scrounging around up there and watching everything you and your family do through the air vents. Mr. Clooney can also cause property values to rise throughout an entire neighborhood, given the vagrant Oscar winner’s habit of moving from one home to another under cover of darkness, his motives and odd proclivities a source of bewilderment to all.” Erazo stressed that this advice applied only to Clooney and that anyone with an infestation of Afflecks in their attic should contact an exterminator immediately.\n pssssst he's in my attic now. Creeps the hell out of me.
Source: TheOnion - 🏆 724. / 51 Read more »
How Value Investing WorksValue investing is a strategy where investors aim to buy stocks, bonds, real estate, or other assets for less than they are worth. Investors who pursue value investing learn to uncover the intrinsic value of assets, and develop the patience to wait until they can be purchased at prices that are lowe If you're a blue ball you're a sheep.
Source: Forbes - 🏆 394. / 53 Read more »
Jared Kushner praises Powell, says Fed chief 'stepped up to the plate' during coronavirus crisisFed Chairman Jerome Powell has 'done a lot of the right things to make sure that the market was able to get through the crisis,' the senior Trump advisor told CNBC on Thursday. 'I love him now! He lowered the variable interest payments on the $billion+ we...err... the Trump Organization owes.' -probably Slenderman- That's because Kushner is a moron. Just propping up a fake market.
Source: CNBC - 🏆 12. / 72 Read more »