multiple expansion

The gain in equity prices is now outpacing profits at a rate not see since the heady dot-com days. In fact, on a GAAP accounting basis, profits have been falling. I believe this creates a dangerous situation in view of rising interest rates…

So the past year has been the year of earnings decline. Yet, the US stock market keeps powering to new highs. What's going on? It's called multiple expansion and it is the hallmark of all bull markets, cyclical or secular. The question is…

As I mentioned in an earlier post on Europe, a slew of manufacturing data was released today. When I wrote the first post, Europe and Asia had been released but the US had not. SInce then, the US numbers came out showing a shock…

It's only fitting that I write something today on Europe's multiples since I wrote yesterday on P/E multiples in the US. What prompted this were two different articles.

After I released my daily commentary a few weeks ago about S&P500 earnings, wages and multiple expansion, there has been a lot of talk about multiple expansion in the media. I think this talk is warranted because this is the crux of the…

A lot is being made of the new high that was recorded by the Dow Jones Industrial Average yesterday. However, in the context of still weak income growth and lacklustre economic growth, the new Dow highs are not as widely celebrated as the…

Jeremy Grantham's most recent quarterly report was released yesterday. Grantham expanded on his low-growth macro view with a number of additional insights based on both secular and political trends dominating the US economic picture. As…

Last year, I was bullish on European shares and this proved the right call as they modestly outperformed. As this year begins, I am doing a lot of thinking about my much-delayed "Ten Surprises for 2011" post. And as I compile list items,…

This an excerpt from yesterday's daily commentary from David Rosenberg. Two things happened on Friday: First, a very successful hedge fund manager was on CNBC and (between songs, apparently) told viewers that the equity market now…

You have probably noticed a change in tone at Credit Writedowns since about June, but a lot more in the past month or so. Once mildly bullish due to the deeply oversold levels this Spring, I have become increasingly alarmed at the…