NEW$ TO U(SE)

Many investors are worried of equities because the Fed is about to raise rates. RBC Capital Markets did some work on that. When the Fed starts raising rates, it normally is because the economy is accelerating, leading a similar acceleration in corporate profits. Here is RBC’s finding:

We looked at the average and median [...]

Here is my latest equity valuation analysis. It makes me feel like an economist (“on the one hand, on the other hand…”) but that’s the way it is!
Previous analysis are archived under the Equities Valuation tab.

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The bullish momentum of global equities, which started a month ago, has extended into the first days of April. But the pace of the rally has made many investors worried that the claws of yet another bear trap are being sharpened.
“We’re not out of the woods by any stretch of the imagination,” said Andrew Milligan, [...]

For a detailed analysis of earnings and market valuations see my tab on Equities Valuation.
Equities are being buoyed by less dire economic data. While there is still some room for multiple expansion, earnings will need to be at the rendezvous in H2 2009 to support the market. On that point, we are well aware that [...]