Category Archives: S&P 500 & DJIA

Getting What You Pay For

Today’s Wall Street Journal, among others, reported on a recent study by the Maryland Public Policy Institute arguing that the public pension funds which pay the highest fees haven’t reaped the highest investment returns.  In fact, the study shows, it’s just the opposite — for the 5 years ended June 2012, the 10 states which Read more […]

Dividends: Love’m or Leave’m

Now that the short-term speculators have left the dividend market, core investors can get back to their boring stocks, collecting their tax advantaged yield (you may not like the increase to 20% from 15%, but I remember when it was 70%, and that was before New York State, City or unincorporated business tax got hold of Read more […]

A Conventional Down Month

Whenever you want to argue that rising interest rates are bad for the stock market, count June 2013 as a point in your favor.  The long end of the US Treasury yield curve notched a -4.07% decline in June (following May’s -6.71% tumble), as rates on the S&P/BGCantor 20+ Year US Treasury Index rose by 66 Read more […]

Damage Control

Compared to a month ago, every major developed equity market is down, some by double digits while bond yields have climbed over the same period.  The U.S. markets – both stocks and bonds — are among the least damaged.  For investors the questions are when will it end?, where can one hide? and why? When Read more […]

Q1 Buybacks Slightly Up, But Fewer Shares Repurchased

Q1 Buybacks Slightly Up, But Fewer Shares Repurchased Breakdown shows a broader participation in share count reduction – but it is slow Q1,’13 S&P 500 buyback expenditures slightly increased 0.8%, to $100.0B from $99.1B in Q4,’12, and was up 18.6% for Q1,’12 $84.3B (record was Q2,’07 at $172B). 12 months ending Mar,’13 increased 3.8% to $414.6B from Read more […]

IMF Cuts US Growth Forecast, Market Reacts

The IMF released its latest forecast of US economic growth and US economic policy this afternoon, sending the S&P 500 and the Dow into negative territory.  While the market response is likely to be forgotten by next Monday, the IMF’s comments are worth consideration.  The forecast sees 1.9% real GDP growth in 2013,  2.7% in 2014 Read more […]

A safer bet?

http://www.pensionsage.com/pa/a-safer-bet.php Read the article in PensionsAge by Peter Carvill, looking at the shifting commodities landscape. In recent decades, investment by pension funds into commodities has been seen as something approaching what may be described as a way to counter-balance the risks from traditional stocks and bonds. As The Role of Commodities in an Institutional Portfolio states: Read more […]

The Other Shoe?

One of the striking things about May’s U.S. equity performance was that although the market continued the strength it had shown between January through April, it was strong in a different way. http://us.spindices.com/documents/commentary/dashboard-us-20130531.pdf For example, the best-performing sector in the first four months of the year was Utilities (up 19.74%); in May the Utilities sector Read more […]

Thinking About P/E Ratios

The chart below is  a scatter diagram comparing the P/E ratio to the price return on the S&P 500 over the next ten years.  P/E is defined as each month’s level of the S&P 500 divided by the earnings per share on the 500 over the trailing 12 months. Both the P/E and the index Read more […]