It’s All Relative

It’s All Relative

  For this week’s indicator, we feature a chart showing the relative valuation of stock dividends and Treasury bond yields. The idea behind the indicator is that stocks and bonds compete for investor dollars. So by comparing their yields, we can get a sense of...
Gaining/Losing Leverage

Gaining/Losing Leverage

  For this week’s indicator, we look at margin debt and how we use it to measure market sentiment. Margin debt is a measure of the amount of stock market borrowing that investors are doing with their brokerage accounts. When there is an increase in margin debt,...
Income Competition

Income Competition

  When it comes to generating income in retirement, an investor has two primary choices: stocks and bonds. A bond is straightforward; the income comes from the bond’s yield. On the other hand, stocks throw off dividends, which have the potential to be lucrative...
Hitting the Brakes

Hitting the Brakes

  Earnings are an important driver of stock market returns. But the stock market is a complicated beast—it doesn’t just trade off earnings growth alone. The key insight of this week’s featured indicator is that the market trades off the change in the...
Better Bargain

Better Bargain

  This week’s featured indicator looks at the stock market’s median price-to-earnings (P/E) ratio to measure valuation. For those unfamiliar, the P/E ratio is the price of a stock divided by its earnings per share. The higher the ratio, the more investors...