Slope of Hope Blog Posts

Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.

S&P 500 Historical PE, Dividend, Earnings (by Ultra Trading)

By -

Below are two charts of historical S&P 500 earnings and dividend yield.  The data goes back to 1960 and is based on year end values.

S&P 500 Earnings and Dividend Yield

Historical average for earnings is 6.86% versus year end 2010 value of 6.65%.

Historical average for dividend yield is 3.15% versus year end 2010 value of 1.84%.

 

S&P 500 Price To Earnings multiple

Historical average is 16.2 versus year end 2010 value of 15.0.

 

Submitted by Ultra Trading.  To read more, please visit - MacroStory.com

The Kinds of Shorts I’m Seeking

By -

Given the current market's vagaries, I continue to stay partly in cash (75% of my portfolio is committed) with a blend of long/short positions (about 20% and 80% short). The shorts I am seeking resemble, in many cases, FFIV, shown below.

0228-FFIV1

What I see with a chart like this are several attributes:

(a) a huge run-up in price;

(b) a dramatic failure of some kind (in this case, a large gap down);

(c) a robust attempt to recover that failure, which itself has failed

0228-FFIV2

FFIV is particularly good since it has broken a major ascending trendline (circled in green, above). Even with the indexes lurching to new highs seemingly every day, stocks like FFIV seem to be the most vulnerable to inevitable….but too-long-awaited…..market weakness.