Stock market crashes are tough to predict. But, there is good data on the frequency of corrections. Since stock market crashes are fast corrections, this is a good place to look for answers.
US dollar slips as the Fed countdown continues forexlive.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from forexlive.com Daily Mail and Mail on Sunday newspapers.
That doesn’t bode well for future returns. So what can you do about it?
The US stockmarket is looking expensive, however you measure it
Here at MoneyWeek, the cyclically-adjusted price/earnings ratio (Cape for short) has long been one of our favourite long-term valuation measures. It was popularised by Yale professor and Nobel prizewinner Robert Shiller in the late 1990s. (Indeed, it’s sometimes known as the Shiller p/e as a result).
What does it do? A traditional price/earnings (p/e) ratio compares the share price (p) of a company to one year of its earnings (forecast or historic). Or, if you’re looking at an entire index, it compares the price of the index to the combined earnings of the companies that comprise it. The higher the p/e, the more you are paying for each pound or dollar of earnings.
Published on: Thursday, December 10, 2020
By: AFP
Text Size:
In this file photo taken on November 22, 2019 this illustration picture hows the logo of the online lodging service Airbnb displayed on a tablet in Paris.
SAN FRANCISCO: Airbnb and DoorDash make their stock market debut this week as part of a “unicorn parade” capping a busy year for hot startups going public.
The startups known as unicorns – valued in the billions – are poised to take advantage of a market hungry for young businesses promising fast growth, with some taking advantage of lifestyle changes due to the coronavirus pandemic.
This week’s big initial public offerings (IPOs) include food-delivery service DoorDash, which has seen a surge during Covid-19 restrictions, to be followed by home-sharing platform Airbnb and e-commerce operation Wish.