Comments on: THE DEBT-EQUITY CLOCK SAYS IT’S TIME TO OWN EQUITIES http://pragcap.com/the-debt-equity-clock-says-its-time-to-own-equities Sat, 26 May 2012 09:29:57 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Leland http://pragcap.com/the-debt-equity-clock-says-its-time-to-own-equities/comment-page-1#comment-7254 Leland Fri, 16 Oct 2009 17:59:05 +0000 http://pragcap.com/?p=10916#comment-7254 Their clock may be right but I'm pretty sure they have it set for the wrong time zone. :-) Their clock may be right but I’m pretty sure they have it set for the wrong time zone. :-)

]]> By: steves http://pragcap.com/the-debt-equity-clock-says-its-time-to-own-equities/comment-page-1#comment-7240 steves Fri, 16 Oct 2009 16:37:23 +0000 http://pragcap.com/?p=10916#comment-7240 Was it a MS analyst that came out last week with a BUY on IBM with a price target of 140? Tops in 2000 and 2007 were 135. Was it a MS analyst that came out last week with a BUY on IBM with a price target of 140? Tops in 2000 and 2007 were 135.

]]> By: Robert in Chicago http://pragcap.com/the-debt-equity-clock-says-its-time-to-own-equities/comment-page-1#comment-7239 Robert in Chicago Fri, 16 Oct 2009 15:16:09 +0000 http://pragcap.com/?p=10916#comment-7239 Note that Rosenberg disagrees violently with the proposition that high-quality equities are cheaper than IG debt. Here is today: "We re-ran our regressions with the latest tightening in spreads and breakout in equity valuation and found that U.S. investment grade credit is now priced for 2.5% GDP growth in the coming year (was 2.0% two-months ago) and the S&P 500 is now de facto pricing in 4.8%, which, by the way, is now basis points shy of what it was discounting in the summer/fall of 2007. And, backing out the fair-value P/E from the corporate bond market, and yields have been backing up sizably in recent weeks, we can see that the S&P 500 is now pricing in $85 of operating earnings, which we think will be, at best, a 2013 story." Note that Rosenberg disagrees violently with the proposition that high-quality equities are cheaper than IG debt. Here is today:

“We re-ran our regressions with the latest tightening in spreads and breakout in equity valuation and found that U.S. investment grade credit is now priced for 2.5% GDP growth in the coming year (was 2.0% two-months ago) and the S&P 500 is now de facto pricing in 4.8%, which, by the way, is now basis points shy of what it was discounting in the summer/fall of 2007. And, backing out the fair-value P/E from the corporate bond market, and yields have been backing up sizably in recent weeks, we can see that the S&P 500 is now pricing in $85 of operating earnings, which we think will be, at best, a 2013 story.”

]]> By: jt26 http://pragcap.com/the-debt-equity-clock-says-its-time-to-own-equities/comment-page-1#comment-7231 jt26 Fri, 16 Oct 2009 13:49:50 +0000 http://pragcap.com/?p=10916#comment-7231 "While debt markets have been led by the rally in high quality debt" Really? Don't seem evidence of this (HYG vs LQD; KDP indices; junk mortgage REITs, Treasuries (just kidding!)) “While debt markets have been led by the rally in high quality debt”

Really? Don’t seem evidence of this (HYG vs LQD; KDP indices; junk mortgage REITs, Treasuries (just kidding!))

]]> By: xxxxxL http://pragcap.com/the-debt-equity-clock-says-its-time-to-own-equities/comment-page-1#comment-7228 xxxxxL Fri, 16 Oct 2009 13:24:25 +0000 http://pragcap.com/?p=10916#comment-7228 Your topic on Ponzi financing was better documented. Your topic on Ponzi financing was better documented.

]]> By: James http://pragcap.com/the-debt-equity-clock-says-its-time-to-own-equities/comment-page-1#comment-7220 James Fri, 16 Oct 2009 09:36:48 +0000 http://pragcap.com/?p=10916#comment-7220 I guess I now know why WAL Mart has been seeing a lot of upside volume... I guess I now know why WAL Mart has been seeing a lot of upside volume…

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