One of the best stocks to gauge the health of the economy is FedEx. If the demand for transportation increases then it’s a sign that businesses are growing, e-commerce is expanding, and the overall US economy should be in good shape. This is why I occasionally pull up FedEx stock to see what it’s doing. Well recently I… Read More »
The S&P 500 continues to reach new highs on a weekly basis. But a major top could be forming right now. One of the most reliable indicators to anticipate market tops and bottoms has been the bullish percent index. The BPI is a breath indicator that uses a point & figure chart to determine when markets are overvalued… Read More »
The S&P 500 hit a record high this week of 4850 points. And it may continue moving even higher. 😀 But this doesn’t mean the overall stock market is doing well. In fact the Russell 2000, which is a more inclusive index of US stocks, is still down about 15% from its all time high back in late… Read More »
Small stocks, big value The stock market has been on a tear lately. The S&P 500 now has a forward P/E ratio of 18.7 which is more expensive than its historical average. As investors we want to buy assets when they are cheap. Luckily stocks can be grouped by size. The S&P 500 are large cap companies. But… Read More »
US stocks are down year to date You probably wouldn’t have guessed it, but stocks are down 4% in 2023 so far. This is according to the S&P 500 equal weight index. However the more commonly quoted S&P 500 index is up 10% year to date. Why the big difference? It’s because only a handful of the 500… Read More »
What the earnings yield can tell investors about stocks The price to earnings ratio is a useful measure to determine if a stock is cheap or expensive. The P/E ratio compares the price of the stock relative to the company’s profitability. So generally a lower P/E ratio represents a better bargain. This valuation metric works across sectors and… Read More »