• How is the Market Near All Time Highs?

    The stock market continues to hang in near all-time S&P highs, even as unemployment is still quite high, virus cases spike, politicians are unable to agree on a fiscal stimulus package despite the agreed upon need, and election uncertainties loom. How can this be? A critical part of the answer to the question is people…

  • Stock Prices

    Why do stock prices rise so persistently over the decades? The bottom line is that over the long run, stock price-to-earnings ratios, and hence their inverse, earnings-to-stock price ratios, have no discernible trend going back to at least 1890. The equity yield peaked in 1949 at 16 percent and ranges between 5 percent and 10…

  • 7 Warning Signs Your Bond Portfolio May Be Yielding 1% (or Less)

    If anything, the title is an understatement. Some investors own a large basket of high quality, investment grade bonds of well-known companies. The yields on such securities have declined dramatically and many are now 1% or even less. Many investors do not realize this, however, because they are looking at their coupons. The same logic…