07-08-2016, 10:48 PM
Well-known Wharton professor of finance Jeremy Siegel says that a rebound in earnings amid low interest rates could add up to a huge rally for the stock market. "If we get a good second half of the year earnings-wise, then I think the market could be up 10 to 15 percent, " Siegel predicted in a Friday interview on CNBC's "Trading Nation." Siegel says that widespread investor perceptions that the market is richly valued are largely due to weak earnings that were engendered in part by the massive decline in oil prices. With energy earnings set to rise nicely and the global macroeconomic environment stabilizing, he says earnings may be ready to rise by 10 to 12 percent. If that materializes, then "given the low interest rates, the market does not look expensive" — particularly with "all the central banks acting very, very dovish."
Siegel: Stocks may jump 15% in the 2nd half of 2016 — here’s why
At its current record level, the P/S ratio leads us to one of two conclusions: 1) Investors are extremely optimistic about future economic and earnings growth or 2) Investors are once again caught up in the frenzy of an equity bubble and willing to invest at valuations well above the norm
Market in 'frenzy of an equity bubble' - Business Insider
today, less-skilled workers often go where jobs are scarcer but housing is cheap, instead of heading to places with the most promising job opportunities, according to research by Daniel Shoag, a professor of public policy at Harvard, and Peter Ganong, also of Harvard. Continue reading the main story One reason they’re not migrating to places with better job prospects is that rich cities like San Francisco and Seattle have gotten so expensive that working-class people cannot afford to move there. Even if they could, there would not be much point, since whatever they gained in pay would be swallowed up by rent.
How Anti-Growth Sentiment, Reflected in Zoning Laws, Thwarts Equality - The New York Times
And when zoning laws get out of hand, economists say, the damage to the American economy and society can be profound. Studies have shown that laws aimed at things like “maintaining neighborhood character” or limiting how many unrelated people can live together in the same house contribute to racial segregation and deeper class disparities. They also exacerbate inequality by restricting the housing supply in places where demand is greatest. The lost opportunities for development may theoretically reduce the output of the United States economy by as much as $1.5 trillion a year, according to estimates in a recent paper by the economists Chang-Tai Hsieh and Enrico Moretti.
How Anti-Growth Sentiment, Reflected in Zoning Laws, Thwarts Equality - The New York Times
They're known as the Bishan 10 - and they're possibly Marina Bay's most famous residents. They've starred in a David Attenborough documentary, and their affairs frequently make the local news. Facebook groups are dedicated to them, and academics study them. They're a family of ten smooth-coated otters, and like many celebrities, they exude an aura of mystery, occasionally making an appearance to the delight of their many local fans. Like true stars though, when they do show their faces, they're extremely comfortable in front of the camera.