Tag Archives: CAPE

Q 4 2017 Newsletter Video Audio Podcast Review By John Kvale

Welcome to our Video and Audio Podcast Review of our Q 4 2017 Newsletter. For those on the road or just unable to grab the time to read, our podcast type review gives you the behind the scenes insight to our thoughts, observations and deep views of the entire Newsletter.

Click here for direct link to an electronic version (an early peek-good ole fashion paper versions are on their way to you shortly) and here for our Newsletter page

Let’s get going!

Q 4 2017 Newsletter

International Market Analysis

In a quest for value, it may be appearing overseas with our friends across the pond. Our core article of the newsletter discusses P/E Price Earnings along with the more smoothed CAPE or cyclically adjusted price earnings which is just a 10 year average ratio. With multiple looks at a long awaited possible long term positive trend, the next 3-5 years may be in the corner of  our overseas friends.

Tripit our App of the Quarter

After stumbling upon a neat app from a dear friend, “Tripit” makes our app of the quarter. Bet you have no idea just how many different reward programs you are involved … after loading them into our app of the quarter, your life will be easier.  Constant price reviews after the purchase along with multiple handy reminders may make this a fun – non financial review and item for you to try out this quarter.

Equifax Update and To Do’s

Our most popular posts on street-cents.com our blog, was the discussion of the Equifax breach. Our theme “Chillax” if our information had not been comprised before, it will eventually. The best defense in this case is an offensive preparation, BEFORE the next breach.

Break In: Yahoo announce after our discussion much more information had been compromised than originally thought …

Not IF, but WHEN our information is compromised …

1 Minute Video Reviews and Screen Shots

With tons of fun and compliments, our half dozen set of 1 minute video’s also make the Newsletter. If you like to talk like I do, full appreciation for just how hard it is to make a 1 Minute video… haha

Here is a link to our 1 Minute Video Page on our Website

Here is a link to all the Videos here on our blog

Parting Thoughts

Shhhh, we have a secret that we want to tell, but are forbidden for a couple of more weeks. We will only say it is an honor!

Watch for a reminder of our hopefully awesome Saturday Before Thanksgiving-Early November 18 Holiday Party at the Dallas Arboretum from 1-3 pm and free reign of the park until 5! Fun times !!!

Thanks for the time!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.

Price is What We Pay, Value it What We Get

In a fun preview to our coming Newsletter, we wanted to run through a few charts and a reminder of a blunt valuation tool … So here we go!

The PE Ratio and CAPE (Cyclically Adjusted PE)

Directly from our Newsletter …

“One of the most basic valuation metrics used from a very macro level is the P/E ratio, or price to earnings ratio. This simply the price of an asset, group of assets, index or the like, divided by the earnings said asset is delivering. Most times the delivery is on a trailing annual basis, making for a nice round number.”

The CAPE ratio is just a fancy name for the 10 year average earnings, in order to smooth out the fluctuations of just one single year.

Current Valuations

Se we know our blunt valuation measure, let’s look at current levels … Higher would infer more expensive … Just FYI

S&P 500 (Favorite US Index) PE Ratio- 25 with a long term average of 14

S&p 500 P E ratio

S&P 500 CAPE Ratio – 31 with a long term average of 17

S&P Cape.png

The world is a smaller place now … Here is a world Capitalization from our friends at JPMorgan – Only 50% US?

JPMorgan MSCI global breakdown

CAPE Ratios for Big Internationals and Emerging Internationals – 15 and 13 BELOW long term average – Possibly Cheap!

9-1-17 EAFA and EEM CAPE

  • Overseas are more reasonable priced versus their long term average
  • Over half the world capital markets are overseas
  • After a long slow recovery, International counties seem to be getting on their feet

Glad we have holdings there!

Have a Great “Internationally Diversified” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.