Twin Peaks

2007 Today
10 Year Yield: 4.64% 1.90%
High Yield: 8.5% 6.6%
VIX: 17.5 14
Gold: $748 $1575
Dollar / Yen: 117 93
Unemployment: 4.8% 7.9%
Size of Fed Balance Sheet: 0.89T $3T
Consumer Confidence: 99.5 69.6
Gas: $2.76 $3.74
Mortgage Rates: 6.38% 3.53%
Student Loans: $590B 1.074T

 

3 thoughts on “Twin Peaks

  1. Valuations are cheaper too:
    IBES 12 month forward P/E: 13.3 now vs. 14.3 then
    Dow Jones P/E: 12.7 now vs. 17.1 then (and 25.9 in Jan. 2000)

  2. Also: Compared to 2007, “Companies today have half the debt and pay a bigger dividend yield – and profits are 13% higher.” (Barron’s) In 2007 the S&P 500 P/E was in the 20s. Today the forward and trailing P/E ratios are 14.5 and 15.5 times (still lower than their long-term averages).

  3. True, I think these comparatively improved valuations will limit equity market’s usual 15% summer declines and make 2013 a very strong year.

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