Practical analysis for investment professionals
07 June 2013

Weekend Reads for Investors: Will It Be a June Swoon for Stocks?

Posted In: Weekend Reads

A sharp sell-off in Japanese stocks and indications that the US Federal Reserve will consider tapering its monthly bond purchases combined to drag global equity indices lower in recent weeks. Whether the pullback is merely a hiccup in the market’s continued advance or the start of something more will, in large part, depend on the economic news flow and, in turn, the response of central bankers.

Top-line growth has been anemic of late and absent renewed economic strength, firms may struggle to meet investor expectations going forward. Corporations have so far delivered on earnings but mostly through cost cutting. The sustainability of profit margins (read James Montier’s “What Goes Up Must Come Down”), already in record territory, bears close watching.

Here are some good reads I came across over the past month.

Central Bank Jawboning

Bulls, Bears, and Equity Risk Premiums

On the Importance of Corporate Profits

Behavioral Issues

The Legacies of Graham and Buffett

SAC Capital in the Crosshairs

Tech Titans

Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.

About the Author(s)
David Larrabee, CFA

David Larrabee, CFA, was director of member and corporate products at CFA Institute and served as the subject matter expert in portfolio management and equity investments. Previously, he spent two decades in the asset management industry as a portfolio manager and analyst. He holds a BA in economics from Colgate University and an MBA in finance from Fordham University. Topical Expertise: Equity Investments · Portfolio Management

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