Musings on Markets

JANUARY 19, 2022

Using S&P's sector classification, I take a look at how each one did in 2022, looking at the percent changes in market capitalization: In contrast to 2020, when technology and consumer discretionary firms ran well ahead of the pack, the best performing sectors in 2021 were energy and real estate, two of the biggest laggards in 2020.

Risk Premium 80

Risk Premium Risk-free Rate Start-ups Equity 80

Musings on Markets

MARCH 19, 2022

The overriding message in all of this data is that Russia/Ukraine war has unleashed fears in the bond market, and once unleashed that fear has pushed up worries about default and default risk premia across the board.

Start-ups 100

Start-ups Risk Premium Equity Market Capitalization 100

Musings on Markets

JANUARY 9, 2021

Consider, for instance, an investor who picks stocks based upon price to book ratios, who finds a stock trading at a price to book ratio of 1.5. By focusing so much attention on a small subset of companies, you risk developing tunnel vision, especially when doing peer group comparisons.

Risk Premium 52

Risk Premium Market Capitalization Equity Start-ups 52

Musings on Markets

MARCH 25, 2021

For much of the last year, I tracked the S&P 500 and the NASDAQ, the first standing in for large cap stocks and the broader market, and the latter proxying for technology and growth stocks, with some very large market companies included in the mix. Risk premiums No effect or even a decrease. Riskfree rate will rise.

Equity 52

Equity Risk-free Rate Treasury Start-ups 52

Musings on Markets

JULY 17, 2023

In my second data update post from the start of this year , I looked at US equities in 2022, with the S&P 500 down almost 20% during the year and the NASDAQ, overweighted in technology, feeling even more pain, down about a third, during the year.

Marketability 95

Marketability Risk Premium Start-ups Treasury 95

Musings on Markets

JANUARY 6, 2023

These assertions may very well be true, but cheap and expensive, at least in pricing terms, is relative, and looking at the data can help you detect rules of thumb that work from those that do not. I do report on a few market-wide data items especially on risk premiums for both equity and debt. Price to Book 3.

Risk Premium 52

Risk Premium Dividends EBITDA Start-ups 52

Musings on Markets

MAY 24, 2021

There are a few arguing that the shift to a technology-based economy has removed inflationary pressures permanently, pointing to the last decade where inflation fears never came to fruition. Consequently, as inflation increases, equity risk premiums will tend to increase.

Treasury 55

Treasury Start-ups Risk Premium Price to Book 55