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High PE Means That without Earnings Surge Market Rally Is at Risk

By Andrew Stotz | Mar 17, 2017

Chart of the Day: Rally was partially fueled by near-zero interest rates. Without a sustainable rise in profit margins US stock market rally could be finished.

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Third Stock Market Boom since 1994, Already Longest, about to Be Strongest

By Andrew Stotz | Mar 16, 2017

Chart of the Day: The US stock market is now up 215%. Of the last three stock market rallies, this is the longest at 97 months and it is about to be the highest.

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If Trump Sparks US Profit Recovery Then Market Run Could Continue

By Andrew Stotz | Mar 15, 2017

Chart of the Day: Relatively low US profit margin means there is a chance for profit recovery. But for now, stock prices don’t seem to be supported by earnings.

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Fed Has Hit Its Dual Targets, Time to Get Back to Normal Rates

By Andrew Stotz | Mar 14, 2017

Chart of the Day: Fed has an inflation target of 2% and an unemployment target of 5%. With both targets now hit the pressure on the Fed is to start to raise rates.

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Profits Suffering at Chinese Car Dealership

By Become a Better Investor | Mar 13, 2017

Zhongsheng Group Holdings Limited is a leading automobile retailer in China. The group distributes luxury and mid to high-end automobiles from well-known brands. Profitability is poorly ranked at #8, but Growth jumped to #2 from #9 in the past 12 months.

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The Danger of False Beliefs

By Become a Better Investor | Mar 10, 2017
Top 5 of the Week of March 6 - Become a #betterinvestor

In our Top 5 this week, we look at the consequences of sticking to your guns, the impact of machine learning in the finance world, and the investing myths behind gold. All this and more…

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Tiny Interest Rate Hikes Are Painful for US Gov’t

By Andrew Stotz | Mar 10, 2017

Chart of the Day: Low rates allowed US Government debt to double with no rise in interest spending. But, if rates slowly double interest as a percentage of total spending would double to 10%.

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Interest Rates Down, Stocks Up and Vice Versa

By Andrew Stotz | Mar 9, 2017

Chart of the Day: Since 1987 short-term rate fell 91% to 0.5%. Long-term rate fell 62% to 3.0%. Falling interest rates, stocks up 745%.

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How to Value Any Company in the World – CFA Thailand

By Become a Better Investor | Mar 8, 2017

Pictures from How to Value Any Company in the World for CFA Thailand on 8 March 2017 at Pacific City Club in Bangkok.

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Ultra-low US Rates and Very High Gov’t Debt

By Andrew Stotz | Mar 8, 2017

Chart of the Day: Normal rate of 2.7% would mean massive 5x increase in interest burden. The interest cost burden of a normal interest rate is now massive.

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