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Stocks are more than twice as highly valued today as they were in 1987 before the crash

“And to think there were those who thought stocks expensive in 1987” writes Jesse Felder for businessinsider.com. Thursday was the 30th anniversary of the stock market crash of 1987 so I thought it might be interesting to compare today’s stock market to that earlier one.Using the ‘Buffett Yardstick’ it’s clear that stocks are more than twice as highly valued as they were back then.By this measure stocks are nearly three times more expensive than they were 30 years ago. Source: businessinsider.com Share This:

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There’s a catalyst that could spark a new stock market rally, and it has to do with DC

“He likes small cap stocks, noting the group could emerge as big winners if tax reform is ultimately passed” writes unknown author for cnbc.com. “Right now, we think non-U.S. developed equities look modestly more attractive than U.S. equity markets,” Gordon said, citing better valuations.He believes the odds of a Republican tax reform plan becoming a reality is rising, and the markets may just be starting to realize it. Source: cnbc.com Share This:

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What could derail the stock-market rally?

“According to FactSet, third-quarter net profit margin so far has edged only slightly lower compared with profit margins in the third quarter last year” reports foxbusiness.com. Historically, net profit margins tend to peak along with the stock market, as seen in the chart below.On absolute terms, however, a net profit margin at 9.5% is close to the record.Ogg suggests the danger lurks in a sudden drop in profit margins. Source: foxbusiness.com Share This:

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Stocks at record highs as Congress inches closer to tax cuts

“Investors are keeping a close eye on developments in D.C. in anticipation of tax cuts for large and small businesses, as well as individual earners” writes Matthew Rocco for foxbusiness.com. Stocks continued their ascent Friday, capping the week at new all-time highs, as lawmakers took a critical step toward cutting taxes.However, stocks don’t necessarily reflect the belief that tax reform is coming, according to Jamie Cox, managing partner at Harris Financial Group.The blue-chip index has booked 52 record closes since the start of the year, extending its third-longest bull market…

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Gains by banks, technology firms lead US stocks higher

“KEEPING SCORE: The Standard & Poor’s 500 index rose 11 points, or 0.5 percent, to 2,573 as of 3:10 p.m” reports foxbusiness.com. Technology companies and banks led U.S. stocks higher in late-afternoon trading Friday, placing the market on course to extend its gains for the week.TAX CUT NEXT?: The passing of a $4 trillion budget resolution in the Senate stoked hopes on Wall Street that President Donald Trump’s tax reform package will be enacted.Higher bond yields allow banks to charge higher interest rates on mortgages and other loans.They also drew…

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‘It’s cool again to invest’: Americans are giddy about stocks as Dow tops 23,000

“Consider these stats: 63 percent of Americans believe the stock market will be higher a year from now” reports washingtonpost.com. If they missed only the five best market days, their portfolio would fall to just under $400,000.The U.S. stock market is soaring, as President Trump likes to point out on Twitter.Fifty-two percent of Americans have at least some money in stocks, according to data released in September from the Federal Reserve.Some worry that stock market euphoria is gripping the country. Source: washingtonpost.com Share This:

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Global stocks get modest boost from US tax hopes

“U.S. shares were poised for a solid opening with Dow futures and the broader S&P futures up 0.2 percent” reports foxbusiness.com. World stock markets pushed higher Friday after the passing of a budget resolution in the U.S. Senate stoked hopes that President Donald Trump’s tax reform package will be enacted.The FTSE 100 index of leading British shares was 0.3 percent higher at 7,542.US TAX PLAN: The Senate on Thursday narrowly approved the budget plan, methodically working through a pack of amendments and rebuffing Democrats’ successive attempts to reshape the blueprint…

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Bank stocks tracker jumps toward 10-year high after budget bill passes

“Bank stocks got a bit lift Friday, as the passage of the budget bill by the Senate helped push up Treasury yields” writes Reporter Editor for marketwatch.com. The bill’s passage is seen as paving the way for President Trump’s proposed tax cuts, could lift longer-term interest rates by boosting economic growth and increasing the deficit, which would increase Treasury supply. Higher long-term yields can help goose bank profits, as it would increase the interest rate spread between longer-term assets, like loans, and shorter-term liabilities to fund those assets. Source: marketwatch.com Share…

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We talked to the chief investment strategist at $6 trillion fund giant BlackRock about stocks, bitcoin and the Fed

“You see great momentum in financial stocks, in many industrial stocks, in many material stocks right now” writes Graham Rapier for businessinsider.com. If you sold every time we were in a low volatility environment, you’d miss a huge amount of upside.The low volatility environment we’re in today reflects the very stable economic environment we’re in.The economic data is incredibly stable, it’s low volatility economic data.Turnill: We absolutely see opportunities within the US market, and actually the economic environment in the US is very attractive. Source: businessinsider.com Share This:

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