Established in 1957, the S&P 500, also known as the Standard and Poor’s 500 Index, is a capitalization-weighted index of 500 large-cap common stocks. Capitalization-weighted means that the companies with largest stock market capitalization have the greatest impact on the value of the index. The S&P 500 is the second most widely followed stock market index in America after the Dow Jones Industrial Average.
The U.S. stock markets have experienced two strong years of back-to-back gains; the S&P 500 soared approximately 30% in 2013 and a solid 13% in 2014; and the Dow Jones Industrial Average recently topped 18,000 for the first time ever. With the Federal Reserve expected to barely increase interest rates in the second half of 2015, t… Read More
The thought of an economic crisis in 2015 is all too distant for too many. With the S&P 500 advancing 200% since its bottom in 2009, it’s worth taking some time to pause and reflect. As is often the case, the most devastating risks are those that we don’t see coming. Few recognized the dangerous consequences of the overvalued hou… Read More
The S&P 500 and many other key stock indices are overpriced when measured by historical stock market valuation tools.
Share Buybacks Still Prevail on S&P 500
In the fourth quarter of 2014, the S&P 500 companies purchased over $125 billion worth of their own shares. In the trailing 12 months, they spent more than half a tri… Read More
There are issues brewing in the stock market with interest rates fears and the strengthening greenback that could drive the S&P 500 lower by five percent or more.
When Will the Fed Increase Interest Rates?
First, we have the fears surrounding rising interest rates after the strong improvement in the unemployment rate to a pre-re… Read More
There is a significant amount of evidence that suggests stock market valuations are stretched to the extreme. Even the Fed thinks the market is expensive.
Federal Reserve Concerned About Stock Market Valuation… Read More
On February 24, 2015, the Federal Reserve issued its semi-annual monetary policy report. In this report regarding the st