- On average, stocks in “value” funds have materially lower price/earnings ratios than “growth” funds, the justification for the latter’s higher P/E being that they produce higher earnings. They also appear to be more predictable.
- Most of the US and much of the developed world are emerging from the “lockdown” phase with the realization that aggregate financial wealth has grown through the price appreciation of homes and marketable securities.
- The danger from rising inflation is how it influences the spending habits of individuals. The key to inflation expectations is whether they extrapolate present levels or anticipate a material change in the rate of inflation.
- Evenduring a week where growth outshone value, investors in NASDAQ stocks were farless bullish than those on the New York Stock Exchange, measured by the ratioof new highs to new lows.
For further details see:
Sentiment Appears To Be Changing - Weekly Blog # 689