What Does Tobin’s Q Really Mean?

As the market has climbed higher and higher, many bears have pointed to the elevated “Q ratio” as a reason for concern. But just what does the Q’s high level mean for investors today?
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Dalio’s Bridgewater Sees No Bubble Trouble

Don’t count hedge fund guru Ray Dalio’s Bridgewater Associates among the investors who think the stock market is in bubble territory.

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Hulbert: Don’t Buy The “Summer Rally”

As summer closes in, many advisers will start claiming that the “summer rally” will be coming with it, says MarketWatch’s Mark Hulbert. But, Hulbert says, don’t listen to them.

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Mobius: Blame The Internet For Deflation

Deflationary pressures have been at work in the US for some time now, part of why the Federal Reserve has kept interest rates so low. And Templeton Asset Management’s Mark Mobius says the Internet is to blame.

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Herro: There’s Value In Europe

Top fund manager David Herro is finding a lot of value in the unloved European region, as well as in Japan. In a recent letter to his Oakmark International shareholders, Herro said he had about 80% of the portfolio in Europe and 11% in Japan. “How we are positioned is really a function of where we are finding individual-company value,” Herro tells Morningstar. “I think it’s really important to realize that a lot of these European and Japanese multinationals have revenue streams and cash flow streams that are really sourced from all over the world. I think that is one of the anomalies that we try to take advantage of. People were scared of Europe, so they stopped buying European equities, even though many of those European companies have exposure to good areas of growth in Asia, even in Latin America, where some of the growth exists. And so, really, this is why we’re positioned the way we are in some of these markets.”

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Industry Rankings: Growth Coming From A Variety Of Sources

Every day, Validea uses John Reese’s Guru Strategy investing models to rank dozens of industries using a myriad of financial and fundamental data. The rankings include a value index, a growth index, and an overall index that takes both growth and value factors into account. Here’s a look at some of the current top-rated industries using the growth index.

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Just What Does The Elevated CAPE Mean?

The cyclically adjusted price/earnings ratio is quite elevated compared to historical standards. Is that bad news for stocks? Charles Schwab’s Liz Ann Sonders says it’s a complicated question.
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