is over, the plant will return to producing 100,000 cars again, increasing its profits and stock price as a result.
What has changed over the years is that investments in intangible assets have superseded investments in tangibles, Neuman said. A higher share of spending is assigned to intellectual property, marketing, training, human resources, and other items that don't appear on balance sheets as assets like machines do. Such intangibles are written off as expenses instead.
He cited video gaming as one such sector. If spending on ads for new games were to be capitalized on gaming companies balance sheets, their price-to-book-value ratios would fall from 4x to 3x, Neuman said. That example constitutes the first of two approaches Neuman recommended to update the definition of"value" as it exists in various indexes and ETFs. It's labor intensive, and involves understanding the value of assets, as well as products in the research and development pipeline, that are not expressed on a company's financial statements. An example is the value of Google's search algorithm, Neuman said.
Vi har sammanfattat den här nyheten så att du kan läsa den snabbt. Om du är intresserad av nyheterna kan du läsa hela texten här. Läs mer:
Sverige Senaste nytt, Sverige Rubriker
Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.
The chief market strategist at $1.3 trillion investing giant reveals the hidden red flag that can signal a recession months in advanceQuincy Krosby, the chief market strategist at Prudential Financial, weighs in on the signals she's watching in preparation for the next recession. Like what is going to happen later this year ?
Källa: BusinessInsider - 🏆 729. / 51 Läs mer »
Skittish investors pull more than $20 billion from stocks, rush into bonds: BAMLGlobal equity funds saw massive outflows this week, a sharp reversal from last w... The long-term indentured bullet bonds sold on WallStreet are in truth no safer than equities or stocks. Companies take on too much debt to accept investors' offer of easy money on credit, but ultimately the Establishment LowInterestRate mantra from federalreserve cuts no ice. Thank the fed chairman opening his mouth again. Can’t have healthy economy and low rates. Could have fooled us.
Källa: Reuters - 🏆 2. / 97 Läs mer »
As worries about populism in Europe rise, investors bet on stock market volatilityInvestors are betting on heightened political uncertainty and greater volatility... Please stop calling Fascists and Racists 'Populists' it puts a veneer of respectability on an evil that doesn't deserve it.
Källa: Reuters - 🏆 2. / 97 Läs mer »
Investors are missing out on this stock market comeback, and that could fuel it furtherThe strong stock market performance to start 2019 has yet to lure most investors back in from the sideline, implying that more gains could be ahead. Should of bought the dip in December. Still in defensive positions now?
Källa: CNBC - 🏆 12. / 72 Läs mer »
A Wall Street strategist who called the last stock plunge says investors are foolishly ignoring one thriving corner of the marketEd Clissold of Ned Davis Research, who called the December stock sell-off, says there's an overlooked middle class thriving in the stock market.
Källa: BusinessInsider - 🏆 729. / 51 Läs mer »
Stock market winners list so far this year features odd bedfellows in 'FANG' and utility stocksStocks that act more like bonds are what investors prefer at the moment. Orthodontist tells me you can fix a FANG by putting having braces installed
Källa: CNBC - 🏆 12. / 72 Läs mer »