There is only one U.S. stock market, but there are countless strategies for estimating the expected risk premium for domestic equities.
The choices come in two broad flavors: fundamental and technical. We could, for instance, crunch the numbers using one of the many variations of discounting future cash flows to assess if stocks are “cheap” or “expensive.” Meanwhile, there are a number of so-called trend-following measures that are worth studying. How to choose? Actually, there’s a persuasive case for routinely analyzing a mix of so-called predictors for evaluating the outlook for stocks, and other asset classes, for that matter. To the extent that a broad and varied menu on this front represents opportunity, the world is brimming with possibilities.
Daily Archives: March 31, 2010
ADP SAYS PAYROLLS SHRUNK (AGAIN) IN MARCH
Nonfarm employment slipped by 23,000 this month vs. February on a seasonally adjusted basis, according to today’s update of the ADP National Employment Report. That’s disappointing news, and it suggests that Friday’s employment report from the Labor Department may be less than stellar. Or does it?