Practical analysis for investment professionals
14 March 2014

Weekend Reads for Investors: Five Years and Counting

Posted In: Weekend Reads

Three months ago, we tried to put this bull market in historical context. While noting some troubling signs typically associated with a frothy market, we also pointed out that stock prices ultimately reflect underlying economic fundamentals and the financial performance of individual companies.

As the bull market hit its fifth anniversary earlier this week, stocks were continuing their ascent and further stretching valuation levels. In a recent speech, Federal Reserve Bank of Dallas president Richard Fisher aptly remarked, “Stock market metrics such as price to projected forward earnings, price-to-sales ratios and market capitalization as a percentage of GDP are at eye-popping levels not seen since the dot-com boom of the late 1990s.”

The Fed, which has worked tirelessly to boost the animal spirits of investors, may want to hang its “Mission Accomplished” banner before it’s too late. Bull markets lasting longer than five years are a rare breed and, as many have pointed out, the “this time is different” meme has a very poor track record.”

Here are some worthwhile reads you may have missed in recent weeks.

Strategic Thinking

What to Do with All That Cash

Stock Selection

Icahn versus eBay

Activists Angle

High Profiles

The Lighter Side


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.

Photo credit: ©iStockphoto.com/JLGutierrez

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

2 thoughts on “Weekend Reads for Investors: Five Years and Counting”

  1. Mohammed Al-Alwan says:

    Hi David
    I would like really thank for the quality contents you are posting on this fantastic blog. keep up the good work.

  2. larrabeecfa says:

    Mohammed,

    Thank you for your kind words.

    Dave

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