Relatively Speaking

Relatively Speaking

  Often, when you hear people talking about the stock market being over or undervalued, they’re usually thinking about it in absolute terms. By that, I mean that they’ll look at a company and see that it’s earning, let’s say, $5 per share and that its stock is...
In Thrust We Trust

In Thrust We Trust

  Sometimes the stock market moves forcefully in one direction, as a sudden surge of money elevates or depresses prices quickly. We can measure when this occurs via a technical tool called a thrust indicator. In general, a thrust indicator will measure market...
Record Keeping

Record Keeping

  This week I want to drill down a little deeper on a chart that we highlighted around the middle of last year.  It’s the number of record highs attained by the S&P 500 stock market index per year, going back to 1928. I bring this chart up because, as you can...
Making a Profit

Making a Profit

  The primary goal of any business is to make a profit; or, at the very least, profits validate a business’s commercial endeavors.  So, for this week’s chart, we show the profit margin of S&P 500 companies over the past 50 years. As you can see on the far...
Excess Liquidity

Excess Liquidity

  The one thing made apparent last year is that liquidity matters to the stock market.  By liquidity, we mean the amount of available money sloshing around the economy; when it’s excessive, it tends to find its way into financial assets—like stocks. One of the...