Latest news with #March
Yahoo
12 hours ago
- Business
- Yahoo
Monitoring The Cape Ratio: Are Stocks Overvalued or Will the Bull Run Continue?
Amid a historic rebound, the S&P 500 has hit another all-time high after flirting with correction territory just three months ago in March. With the S&P 500 dropping more than 10% in March from its previous high of 6,144 in February, the benchmark has now rebounded and hit a new peak of over 6,180 on Friday. Such a fast recoup in the broader market is unprecedented and can sometimes take years. That said, it's certainly a worthy topic of whether stocks are overvalued or if there is indeed a clear path for a Bull market to continue. To do so, let's take a look at the Cape ratio, also known as the Shiller P/E ratio, and review the bullish sentiment that's lifting markets. Notably, the Cape ratio is used to calculate the price of the stock market or individual stocks relative to their average inflation-adjusted earnings over the last 10 years. Keeping this in mind, the Cape ratio smooths out fluctuations caused by economic cycles, providing a clearer view of whether stocks are overvalued or undervalued based on their historical average. Preluding the market correction earlier in the year, many analysts, including famed billionaire Jeffrey Gundlach, had called for a market recalibration based on the Cape ratio's reading of 38X earnings on the benchmark S&P 500, the second-highest level ever. This Clinically Adjusted Price-to-Earnings Ratio (CAPE) has roots that date back to 1934, when David Dodd and Warren Buffett's mentor Benjamin Graham proposed smoothing out earnings over multiple years in their investment book 'Security Analysis', which provided a foundational idea behind CAPE. Retroactively calculating historical earnings data for the U.S. stock market back to 1881, the Cape ratio was formally introduced by economists Robert Shiller and John Y. Campbell in 1988. Furthermore, the Cape ratio gained notoriety in the late 1990s and early 2000s, thanks to Shiller's warning of the dot-com bubble. Following the broader market's most recent and historical rebound, the Cape ratio on the S&P 500 is currently at 36X, which is once again well above its historical average of around 16-17X. Image Source: YCHARTS Despite the Cape ratio indicating stocks are overvalued, a clearer path to global economic growth has been established with the U.S. officially reaching a framework trade deal agreement with China on Friday. President Trump's 10% baseline tariff on most countries is set to expire on July 8, but has eased concerns that rattled the stock market, providing a 90-day pause on higher imposed country-specific tariffs. While this deadline is just a few weeks away, Treasury Secretary Scott Bessent has advised that most trade deals should be done by Labor Day (Monday, September 1st). Allowing more time for negotiations, the U.S. has come to a trade agreement with the U.K. as well and is in talks with other major trading partners, including the E.U., India, and Japan. Optimistically, May's jobs report and inflation data added fuel to the market rebound earlier in the month after coming in better than economists' expectations. Meanwhile, reports of an Israel-Iran truce were able to sustain this optimism, although it's noteworthy that President Trump has just gone on the record and said he is terminating trade talks with Canada at the time of this writing. While overly bullish market sentiment can sometimes be questioned as a conundrum, investors should know that this usually preludes to higher corporate earnings, the general principle that manifests in a higher stock market. Over the last decade, the earnings from the companies in the S&P 500 have grown by over 9% annually, with the index up a bullish +200% during this period. Image Source: Zacks Investment Research Considering the stock market needs higher EPS figures to ease the Cape ratio's overhyped reading, it's noteworthy that Zacks director Sheraz Mian has pointed out that S&P 500 earnings for the second quarter are currently expected to be up +4.9% from the same period last year on +3.9% higher revenues. However, Mian also points out that while negative revisions to Q2 estimates have stabilized in recent weeks, tariff uncertainty has caused estimates for the period to be under significant pressure relative to other recent periods. Inherently, for the bull run to continue, a relatively strong Q2 earnings season and better-than-expected corporate guidance will be crucial, with the Cape ratio at a very high 36X. This may certainly be the case with the S&P 500 already hitting a new all-time peak after rebounding +10% in just three months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
15 hours ago
- Business
- Yahoo
CoreWeave, Inc. (CRWV) Is One Of The Most Bullish Things In My Career, Says Jim Cramer
CoreWeave, Inc. (NASDAQ:CRWV) is one of the . CoreWeave, Inc. (NASDAQ:CRWV) is an AI infrastructure company that provides businesses with hardware to let them run their AI applications. It is one of the few pure-play firms of its kind and the shares have gained a whopping 298% since their IPO in March. Soon after the IPO, Cramer dismissed news reports that CoreWeave, Inc. (NASDAQ:CRWV) had been created specially by NVIDIA to create demand for AI GPUs. This time around, he commented on the strong share price performance which indicated that even Cramer hadn't expected CoreWeave, Inc. (NASDAQ:CRWV)'s shares to perform the way that they did: 'Look can I just say that these are some of the most bullish things I've seen in my career? That CoreWeave could have been priced at 40 and it went to 178. That this Circle just keeps being bought, that Palantir keeps being bought. That a Broadom is going, that Goldman is going. . .' Recently, the CNBC host discussed some of the drivers of CoreWeave, Inc. (NASDAQ:CRWV)'s share price performance: 'Take CoreWeave. This is the company that came public at $40 a share, [a] company I recommended and pushed incredibly hard to. People didn't believe me. Many chose to bet against the stock. 32% of the shares are sold short. On Friday, CoreWeave hit a high of $187. Stock still sits at $172 and change. Sure, it reported a great quarter, but a lot of this move is because so many people were betting against it because the company picked a bad time to come public. I had tremendous conviction that CoreWeave would make a big move, but not this big. Again, I think discipline must trump conviction, and you gotta do some selling here. Well, I still like the stock. I recognize that much of this move was powered by panicked short sellers. Take something off the table, please.' While we acknowledge the potential of CRWV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
WebMD
2 days ago
- Health
- WebMD
A Severe Crisis Disrupts My Routine
Back in March, I had a severe sickle cell crisis that forced me to go to the hospital for stronger medication than I have at home. It had been three years since I'd had to do this. In those three years of being out of the hospital, I had no disruptions to my routine. A life free from the hospital began to feel achievable. All my other crises were manageable at home. When I recover from this level of crisis, I often experience amnesia about the events. I don't recall the pain or every detail of what I was going through because with something so traumatic, it is best to forget in some parts to move forward. However, a few days after the crisis began, I recorded my thoughts to document what was going through my mind. Looking back at the transcript, I realize how raw and dark my emotions were. It's a stark contrast to my usual "make lemonade out of lemons" attitude when I write publicly. I woke up at 2:30 a.m. and immediately felt that familiar pressure building around my body, accompanied by excruciating pain. The intensity of the crisis was a solid 10 out of 10. It felt like the pain was everywhere: my legs, my back, my arm, and my head were all under pressure. I couldn't breathe. Struggling for air, I took my most potent medications to try to alleviate some of the pain. When my friend asked if I wanted to go to the hospital, I didn't hesitate. That moment showed that this crisis was beyond what I could manage at home. I've always given my medication time to work before seeking medical attention, but this felt different. The pain and the sensation were so intense, it felt like death was calling me. But I wasn't ready to die. At that moment, I realized that at least with medical care, I might have a chance to hang on a little longer. That was the hope. My friends helped carry me to the car, wrapped in blankets to keep me warm. We knew the ambulance would take too long. I'm so grateful to my support system for helping me through this, carrying me to the car, and ensuring I was as comfortable as possible. In and out of consciousness, I felt the weight of the burden I placed on them. Once again, I exposed my loved ones to the ugliness of what sickle cell can do. It's never easy for them, and it's never easy for me. Despite everything, I overcame that moment because these people are my family. The family sees you at your best and worst. As I entered the hospital, the nurse started the triage process. I tried to stay calm. I knew that the more I panicked, the worse the pain and fear would become. Maintaining my breathing and emotions felt impossible while the pain swirled around my body, never staying in one place. I didn't know if I was experiencing acute chest syndrome, a stroke, or just a full-body sickle cell crisis. It was terrifying. I waited to be seen for the proper medication and a bed. It took about an hour before I was in a room, but it felt like hours. Eventually, they transferred me to another room where the testing began. They started me on IV medication, which I could technically have at home. Still, I trusted the doctors to follow the right course of action. Slowly, the medication began to help. The pain started to ease, though the road ahead still felt long. By the time the morning came, after hours of treatment, the pain finally felt manageable. I left the hospital with my friends supporting me again, ensuring I had the necessary medications. While the potent drugs helped manage the pain, they also made me drowsy, causing my thoughts to blur. In that state, all my commitments, work, meetings, therapy sessions, and appointments faded away. All I could focus on was survival. It was a strange, disorienting place to be. I'm used to worrying about others and sticking to my commitments. Still, at that moment, I was a shell of myself, unable to function without support. It was a complex crisis that reminded me of the heavy toll sickle cell takes on both body and mind. Guilt comes in because this isn't a regular occurrence for me, while others with sickle cell go through this so routinely. I'm struggling a lot with this, but I survived, and in the end, that's what matters, time to recover fully. Recovery is always in stages – physical, mental, and spiritual – to get back to where I was before the crisis hit.
CTV News
3 days ago
- General
- CTV News
Report on Manitoba Telus outage reveals how many 911 calls weren't able to connect
A new report into a Telus network outage in March reveals how many people were unable to get through to 911. Nearly 60 people were unable to get through to 911 during a Telus network outage in March. In a new report to the Canadian Radio-television and Telecommunications Commission (CRTC) from Telus on June 16, the company said an outage started just after 10 p.m. on March 22 and lasted until March 24 after 1 p.m. Telus said the outage involved facilities that connect Telus to Bell's 911 network, which directs calls to Brandon's Public Safety Answering Point (PSAP). Telus said a technician was sent out shortly after the outage started to investigate what happened. 'The Telus technician who attended to the outage did not follow the accepted protocols between Bell and Telus to alert about an outage affecting 911 circuits and did not follow Telus' standard practices by failing to escalate the issue with the company,' the report reads. Telus said the technician who responded has been disciplined. Telus' 911 team learned about the outage on March 24 around noon and worked with Bell to fix the issue, the report said. During that nearly 40-hour period, Telus said 59 people tried to call 911 around 177 times but were unable to get through. Dean Switzer's family and friends tried to call 911 around 18 times on March 23 when he suffered a heart attack. A family friend who is an RCMP officer was eventually able to get an ambulance to the house, but the 55-year-old died later that night. Telus said equipment failure was the reason for the outage, but the company doesn't know why the equipment failed. 'The failure on the Bell facilities lasted approximately four minutes. However, this failure has the effect of causing failure of the eight Bell network circuits leased by Telus, which comprise both primary and redundant connections and whose function is to deliver 911 traffic from Telus' wireless network to Bell's 911 network destined for the Brandon PSAP.' Following the outage, Telus said it has reviewed what happened and has now put in an alternate route to ensure 911 calls can still connect in the case of another network failure. If this option also fails, Telus said calls will be rerouted to its operator service team. 'This new call routing will provide an added layer of reliability and resiliency to the enhanced 911 call environment. Telus confirms that with these backup processes in place, 911 calls will continue to complete even with an equipment outage of this kind.'
CTV News
3 days ago
- General
- CTV News
Telus releases report into 911 outage
A new report into a Telus network outage in March reveals how many people were unable to get through to 911.
