Liz Ann Sonders – Charm

The meme stock rally continues the Trump trade rebound that has stocks trading at record highs

Meme stocks are running wild again. Some of the latest highfliers — Krispy Kreme (DNUT), Opendoor (OPEN), and Kohl’s (KSS) — all have one key thing in common: They are heavily shorted stocks. This means investors have been betting the next price move for these names will be lower, and some strategists suggest that this…

The price-to-earnings ratio is a very poor market-timing tool

Cs news7 months ago7 months ago023 mins

Valuation metrics like the price-to-earnings (P/E) ratio help us understand whether a security is cheap or expensive relative to history. And there’s some evidence that valuations can tell you something about long-term returns. However, as reminds us: Valuations offer almost no signal as to what prices will do in the coming year. “[W]e think the…