Green Book November 1988
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Featured Articles
Comparing Common Stock Cash Flow Yields to Bond Yields: The Ratio
Comparing cash flow yields with bond yields we find that stocks are not significantly overvalued compared to bonds. Stocks are not yet comparatively cheap, but they come out much better in this stock/bond comparison than in the dividend yield/bond yield comparisons or in the earnings yield/bond yield comparisons.
Did You Catch an LBO Target?
Even considering the LBO mania and the market’s contracting breadth, I still think the stock market is basically healthy. While a 5%-10% post-election correction is now expected, our Major Trend Index remains comfortably in positive territory.
Dividend Payout Ratios
In our view, the 1988 payout ratios below 40% do not (and should not) represent the start of a new contracting period in payout ratios. Rather, this current contraction is almost solely the result of the 1988 earnings explosion.
Joke of the Month
This month we have a tie. Both the winners are timely, dealing with a now well-known politician. The first comes from The Leuthold Group's Chuck Zender and the second from Ellsworth Davis in Hartford.
Scanning the Markets
For the month of October, the S&P 500 gained 2.6%, with the Value Line Composite down 0.1% and the DJIA up 1.7%. Cyclical and blue chip growth groups tended to dominate the leaders while secondary technology oriented groups were concentrated toward the bottom of the list.
View from the North Country
LBO Mania and Ramifications...Dr. Ravi Batra’s Sequel “Surviving the Great Depression of 1990”...Leuthold Commodity Speculation Experiences
Table of Contents
Stock Market
- View from the North Country
- Did You Catch an LBO Target?
- Comparing Common Stock Cash Flow Yields to Bond Yields: The Ratio
Of Special Interest
Macro Monitor
Equity Strategies
At Random
Comparing Common Stock Cash Flow Yields to Bond Yields: The Ratio
Comparing cash flow yields with bond yields we find that stocks are not significantly overvalued compared to bonds. Stocks are not yet comparatively cheap, but they come out much better in this stock/bond comparison than in the dividend yield/bond yield comparisons or in the earnings yield/bond yield comparisons.
Did You Catch an LBO Target?
Even considering the LBO mania and the market’s contracting breadth, I still think the stock market is basically healthy. While a 5%-10% post-election correction is now expected, our Major Trend Index remains comfortably in positive territory.
Dividend Payout Ratios
In our view, the 1988 payout ratios below 40% do not (and should not) represent the start of a new contracting period in payout ratios. Rather, this current contraction is almost solely the result of the 1988 earnings explosion.
Joke of the Month
This month we have a tie. Both the winners are timely, dealing with a now well-known politician. The first comes from The Leuthold Group's Chuck Zender and the second from Ellsworth Davis in Hartford.
Scanning the Markets
For the month of October, the S&P 500 gained 2.6%, with the Value Line Composite down 0.1% and the DJIA up 1.7%. Cyclical and blue chip growth groups tended to dominate the leaders while secondary technology oriented groups were concentrated toward the bottom of the list.
View from the North Country
LBO Mania and Ramifications...Dr. Ravi Batra’s Sequel “Surviving the Great Depression of 1990”...Leuthold Commodity Speculation Experiences
Stock Market
- View from the North Country
- Did You Catch an LBO Target?
- Comparing Common Stock Cash Flow Yields to Bond Yields: The Ratio