The Stingy News Weekly: 11/28/2021
Stingy News Flash
My friend Dan Bortolotti recently published "Reboot Your Portfolio: 9 Steps to Successful Investing with ETFs." You can buy a copy of the book at Indigo or Amazon.
If you're interested in the book then let me know before the end of the month and I'll put your name in the hat for a random draw. I'll mail a copy of the book to the winner's address in Canada.
A difficult choice
"When I focused on the percentage I had in stocks, I thought I could weather a bear market. But I'd lost sight of the total dollars at risk. Losing 30% to 40% of that money doesn't feel nearly as manageable. That's why I've let my stock allocation trend down from 64% a year ago." [Markets]
The value of value
"About a year and a half ago, after one of the worst relative drawdowns the value factor has ever seen, I wrote a piece showing the value factor was cheap relative to history. Since then, value strategies are on a solid run (look at pretty much any type of value strategy and I think you'd agree). Today? The valuation spread between the cheapest 10% and the universe of stocks is cheaper. We are at levels beyond 1999 by some measures." [Markets]
This will not last
"if four years ago you looked at the stocks with a P/S ratio above 20 and those with a P/S ratio below 20, the above 20 group would have underperformed (and lost money on absolute terms) through today" [Markets]
Musing about S&P 500 valuations
"Analyzing the 10 largest stocks in the S&P 500 shows a quite heterogeneous picture based on the earnings expected for the next fiscal year. The shareholders of JP Morgan Chase only have to wait approximately a decade for their initial investment to be earned by the company, although it is worth mentioning that bank earnings are highly cyclical, which might make this significantly longer. In contrast, the investors in Tesla require close to 200 years for the earnings to accumulate to its market capitalization, which reflects a rather obscene valuation." [Markets]
S&P/TSX60 Value Screens
DOW 30 Value Screens
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