Stock market volatility is back

I’m not the only one saying the S&P 500 needs to drop.  An article at My Budget 360 has some good information and analysis about P/E ratios and why they matter. Some are arguing that the fair value of the S&P 500 should be somewhere around 440 if we take a multiple of 15 which […]

Listen to experts – and go broke

While reading through the news today, I saw several articles and stories talking about how now is a good time to buy stocks.  I’ve been reading this same type of story since mid 2007, and there’s one thing they all have in common – they’re all wrong. They’re wrong because the “experts” the writers quote […]

Are stocks cheap?

CNN seems to think stocks are cheap right now.  Really.  A story this morning is headlined New lessons from the crash and the lead in says  Finally, stocks are cheap. Really. So it may be time to break the rules – just a little – to take advantage of this opportunity. The story goes on […]

S&P 500 earnings in the tank

It’s been about a week since I posted an updated earnings report for the S&P 500, and there are a few new items. By far the biggest item is that S&P is now recognizing that Q4 earnings – well, there aren’t any.  This will be the first quarter ever where the 500 companies (which make […]

S&P 500 Earnings Update

Here’s an update to a story I wrote this past weekend.  It looks like Standard and Poors has updated some of their earnings estimates, but they also updated the reported earnings since I posted. Here’s a link to a spreadsheet on Standard and Poors site.  If you read my last post, you’ll notice a few […]

Is Standard and Poors finally getting it?

I was just looking up the latest earnings estimates for the S&P 500 on the Standard and Poors website, (link will open an Excel spreadsheet) and I noticed a dramatic change from a week ago. In the “Operating earnings per share” section near the top, where Standard and Poors normally lists the estimated earnings for […]

What a difference a year makes

Last January I was beginning to get tired of reading stuff like “kitchen sink quarter” and “this is a great time to buy real estate” and “this is the time to buy stocks”.  One evening I happened to read a post by Doug Kass entitled “Buy the Financials. Yes, Buy” in which he made a […]

Buy and hold is dead

I posted this in a MarketWatch.com comment a bit ago and decided it was worth putting here.  This post was in response to another comment about the importance of having a long term (10 years) time horizon when investing.  I disagreed.  Here’s the post: So if you put $100,000 into the S&P 500 10 years […]

Knoxville Area Economy Heading Down

It’s been a bad week for business in the Knoxville area to say the least.  Here are some headlines from just this past week: Goody’s shutting doors after 55 years in business (800 jobs lost) Sea Ray plant closing (575 jobs lost) Officials ‘in shock’ as Alcoa announces layoff of 450 (450 jobs lost) ImagePoint […]

News Headlines on Friday

I thought the headlines on Friday were interesting.  There was ZERO good news about the economy, and all the economic and earnings reports were worse than expected.  But the stock market went up.  Makes no sense to me. Here are the top headlines from Reuters Business news as of 12:57pm (ET) yesterday. GM, Ford losses […]