Both the S&P 500 and the Dow are among the 10 best performers this year among 91 national indexes tracked by Bloomberg. The Dow has rallied 6.1 percent in 2011. That’s below the average gains of 12 percent in years before presidential elections since its creation in 1896, according to data compiled by Bloomberg and Dow Jones.
Stocks gained today as companies cranked out more goods in December and pending sales of existing homes jumped in November for a second month, pointing to a pickup in U.S. economic growth as 2011 comes to a close. The number of Americans filing claims for jobless benefits dropped to 375,000 on average (INJCJC4) over the past four weeks, the fewest since June 2008, Labor Department figures showed today in Washington.
Investors also watched developments in Europe’s attempt to tame its crisis. Italy auctioned 7.02 billion euros ($9 billion) of bonds, falling short of the target, as borrowing costs declined in its final debt sale of the year.
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Showing posts with label equities. Show all posts
Showing posts with label equities. Show all posts
Thursday, December 29, 2011
Saturday, September 24, 2011
Looks like a buying opportunity!!!
The price-earnings ratio as of Friday was 5.1 percent below the S&P 500’s average valuation of 13 at its lowest point in the last nine bear markets, data compiled by Bloomberg show. To reach the lowest of those, 7 on June 21, 1982, the index would have to fall 43 percent to about 640, based on profit in the last 12 months of $91.41 a share.
“Stocks are starting to get pretty cheap,” Jack Ablin, chief investment officer for Chicago-based Harris Private Bank, which oversees $55 billion, said in a telephone interview. “It’s reality versus expectations. I don’t know where reality is going to be, but if their expectations are pretty low, that’s a good sign for me.”
The Morgan Stanley Cyclical Index of companies most-tied to the economy rallied 1.1 percent. Home Depot, the largest U.S. home improvement retailer, gained 2 percent to $33.72. Intel rose 2.5 percent to $22.16.
The Dow Jones Transportation Average advanced for the first time in a week, stopping the worst five-day decline since Aug. 8, as airline shares rallied and traders were lured by the lowest valuations in about two years.
“Stocks are starting to get pretty cheap,” Jack Ablin, chief investment officer for Chicago-based Harris Private Bank, which oversees $55 billion, said in a telephone interview. “It’s reality versus expectations. I don’t know where reality is going to be, but if their expectations are pretty low, that’s a good sign for me.”
The Morgan Stanley Cyclical Index of companies most-tied to the economy rallied 1.1 percent. Home Depot, the largest U.S. home improvement retailer, gained 2 percent to $33.72. Intel rose 2.5 percent to $22.16.
The Dow Jones Transportation Average advanced for the first time in a week, stopping the worst five-day decline since Aug. 8, as airline shares rallied and traders were lured by the lowest valuations in about two years.
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