Market signals so far in 2019 back adage ‘sell in May and go away’ GlobeInvestor
George Athanassakos is a professor of finance and holds the Ben Graham Chair in Value Investing at the Richard Ivey School of Business, University of Western Ontario.
First, corporate bond issuance in the United States has sharply risen over the past few years from US$5-trillion in 2006 to US$9.1-trillion in 2018. The U.S. corporate debt as a percentage of GDP now stands at close to 47 per cent, a new record high versus the previous peak of 45 per cent in 2008. A lot of this debt is rated BBB, although more than 50 per cent of it would be rated as junk according to leading fixed-income investor Jeff Gundlach.
Sixth, the world is flushed with liquidity, and capital flows are driving valuations irrespective of fundamentals. For example, many mergers today are taking place at 12 to 14 times EBITDA, or earnings before interest, taxes, depreciation and amortization, well above the typical 11 times EBITDA. Portfolio managers’ own agendas and their efforts to maximize their own benefits lead them to rebalance portfolios and window dress in a predictable way throughout the year.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
U.S. industrials’ gains put to test as earnings ramp upIndustrials’ gains put to test as earnings ramp up GlobeInvestor
Read more »
Avalanche prospect Cale Makar wins Hobey Baker Award - Sportsnet.caMassachusetts defenceman Cale Makar has won the Hobey Baker Memorial Award as college hockey's top player.
Read more »
Viral Photo Of Crying Girl At The Border Wins 2019 World Press Photo AwardsJohn Moore's haunting photo was among the dozens of winning images that show the power of photojournalism.
Read more »
Alberta election 2019: Kenney wins majority as UCP routs NDP in campaign dominated by economic woesThe UCP win puts an end to Rachel Notley’s historic term in office, making the NDP the province’s only one-term government
Read more »
Alberta election 2019: Kenney victory another thorn in side of Trudeau as he seeks re-electionAlberta election 2019: Kenney victory another thorn in side of Trudeau as he seeks re-election GlobePolitics
Read more »
Performances at Coachella 2019The Coachella Music & Arts Festival takes place in Indio, Calif.
Read more »
Breaking down Ontario's budget for 2019Ontario Finance Minister Vic Fedeli unveiled the provincial budget for 2019, but what how does it impact residents? Colin D'Mello reports.
Read more »
Trump campaign to report unprecedented $30 million haul in first quarter of 2019The haul brings the campaign’s cash on hand to $40.8 million — and nearly 99% of its donations were of $200 or less
Read more »