logicalcliff

S&P500 Whither?

In Finance on May 16, 2012 at 5:40 pm

At about 1340 S&P500 looks cheap to some. People often say that it has not done much for past 12 years or so and hence it is a good time to buy stocks. Goldman Sachs recently came with a hung ho report claiming that stocks are going to give stellar performance. Unfortunately, the downside risk for a value investor is more than what media cares to admit.

As Robert Shiller has shown in his book Irrational Exuberance the P/E remains way above the historical average. True, P/E is not a good indicator of stock performance. One should also look at margins and PEG. Unfortunately, these metrics present an even more dour picture. Be careful. The S&P might disappoint many and for quite some time  before it starts its long-awaited bull run.

Here is an excellent video on efficient market hypothesis by Robert Schiller. Funny, simple and deep – just the way the most profound thoughts should be. He points out that it is unlikely but not impossible for you to beat the market. That chances of being Warren Buffet are really smaller than you think. And that how thoughts change as people age – youth are more likely to believe that they can beat the market:

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The world in numbers: PG&E electric rates over time

In Uncategorized on January 5, 2019 at 6:15 pm

How did PG&E electric rates change over-time?

The World in numbers: Is San Jose the most dangerous city in the South Bay?

In Uncategorized on January 5, 2019 at 5:43 pm

While murder and rape are undoubtedly more serious crimes, more people experience or know someone who experienced burglary. Here is how San Jose compares to other cities in the south bay.