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Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

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Are Stocks Overpriced ?

FYI: It’s a head-spinning market for investors now. Are bonds too expensive or are stocks? In a word, “yes.” You could argue that neither equities or fixed income securities are cheap. Allow me to explain.
Regards,
Ted
http://wealthmanagement.com/print/equities/are-stocks-overpriced

Comments

  • I think foreign stocks are in better position in the near term:
    1. trading at more favorable PEs
    2. Europe and Japan are in early phase of recovery (however slow) and better chance of further earning expansion than that of US.


  • I think too much attention is being paid to stocks like LOCO and SHAK. The valuations on these upstarts is crazy. The media is to blame as well. There are some stocks that are still undervalued.
  • Re foreign equity funds:

    http://www.usatoday.com/story/money/2015/01/16/investing-international-funds/21825245/

    Both supports (sort of) and modulates what Sven posted. As OAKIX and SGOIX are closed, recommendations are interesting.

    Wagg has moved on to other venues.
  • Right now I am overweight foreign equities (40% US, 31% foreign) because of more attractive valuations and, more importantly, those countries are in the midst of QE whereas we are at the end of our QE. I continue to like lower volatility foreign plays like MINIX, EFAV and GLIFX/GLFOX.

    Kevin
  • OAKIX was still available at Fidelity 5-6 months ago. HAINX, ICEIX are still open, although availability on some platforms is spotty. SGOVX, IVVYX are available on some platforms NTF, but often only via Registered Investment Advisers. QFVIX is another strong contender, although fees are pretty high. We use Ivy as a core international hold for many clients, along with First Eagle for low volatility.
  • Davidrmoran, give FMIJX a look. Low cost, good up/down capture ratio. I moved from OAKIX to FMIJX when rolling over to an IRA. Very happy with the switch.
  • edited May 2015
    @Bob C. Great to have you back again! Reminds me of an old 1920's Ma Rainey jazz song: "Honey, where you been so long?".:)
  • MikeM said:

    Davidrmoran, give FMIJX a look. Low cost, good up/down capture ratio. I moved from OAKIX to FMIJX when rolling over to an IRA. Very happy with the switch.

    I highly recommend FMIJX as well. Very well run fund with competent management.
  • "and better chance of further earning expansion than that of US."

    Your Kidding right?

  • edited May 2015
    "Your Kidding right?"

    Let's hear your opinion rather than a drive by posting.

    I think @Sven makes a good point. It all depends on where in the cycle each country is at the moment. Japan is doing well.
  • Ditto on FMIJX. Used to own Harbor International, but it seems to have lost its way, certainly compared to FMIJX.
  • edited May 2015
    I'm sure FMIJX is a fine fund, but it has definitely benefited from their significant currency hedging as detailed in the semiannual report of 3/31/15. Here is a CHART of FMIJX vs. DBEF.

    Kevin
  • Management team at FMI has been taking a conservative and cautious approach (currency hedging and high cash position) has worked out nicely since inception. FMIJX is only open fund in this small shop.
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