12-15-2015, 01:00 AM
One reason many investors think stocks are reasonably priced is that they are comparing today's stock prices to this year's earnings and next year's expected earnings. In some years, when profit margins are normal, this measure is meaningful. In other years, however — at the peak or trough of the business cycle — comparing prices to one year's earnings can produce a misleading sense of value. Profit margins tend to be "mean-reverting," meaning that they go through periods of being above or below average but eventually — sometimes violently — regress toward the mean. As a result, it is dangerous to conclude that one year of earnings is a fair measure of "earning power." If you look at a year of high earnings and conclude these high earnings will go on forever, for example, you can get clobbered.
Stocks are dangerously expensive - Business Insider
Too fast, and it is feared that the Fed could choke off not just the US economy, but also send shock waves through emerging markets, which are dependent on the US for growth. Signs that higher US rates were approaching threw currencies of these vulnerable economies into turmoil this summer.
Why the coming US interest rate hike is like none ever witnessed before - Telegraph
A look back at the past 30 years or so shows that the US stock market typically rises in the run-up to the first rate hike in a tightening cycle – by an average 17pc in the year before the last four turns. But crucially, the market also tends to rise in the year that follows the first hike. The 7pc average rise is lower but still usefully positive.
Good reasons why a Fed rate rise should not be feared - Telegraph
“No power, just precision,” said a matter-of-fact McGregor, who reacted to the stunning victory as if it was simple destiny. “No speed, just timing. That’s all it takes.
Conor McGregor stuns Jose Aldo in 13 seconds to take UFC featherweight title | Sport | The Guardian
We’ve tested nearly every over-the-air (OTA) TV DVR out there, and while some of them came close, none of them really hit the target for us. The TabletTV system, however, makes a ton of sense. It may not have a massive built-in audience waiting to pounce on it, but once word gets out about how cool it is, we have a feeling it’s going to be extremely popular.