De Beursvloer #89: Buy in May

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Op zondag 10 mei 2009 21:26 schreef SeLang het volgende:
Hier heb je trouwens die green shoots die beleggers zienroken:

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Op zondag 10 mei 2009 20:08 schreef pberends het volgende:

Authors@Google Peter Schiff

The Authors@Google program welcomed Peter Schiff to Google's NY office to discuss his book, "Crash Proof: How to Profit from the Coming Economic Collapse".

"Peter Schiff is an American economic commentator, author and licensed stock broker who currently serves as president of Euro Pacific Capital Inc., a fully accredited brokerage firm based in Darien, Connecticut."

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Op maandag 11 mei 2009 10:12 schreef LXIV het volgende:
Nou, ik dump weer een plukje ING. Ik wilde toch afbouwen. Gaat het alsnog stijgen, ook goed want ik heb nog genoeg. Gaat er >15% af deze week, dan pak ik hetzelfde aantal aandelen weer op en steek ik het cashverschil in de zak. Alles is goed wat mij betreft.

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Tempo banenverlies vertraagt

In de VS gingen in april 540.000 banen verloren. Een forse afname, maar het goede nieuws is dat het tempo van de krimp afneemt. Het is de meest geringe afname in zes maanden tijd. Sinds de start van de recessie zijn inmiddels 5,7 miljoen banen verloren gegaan en is het werkloosheidspercentage opgelopen tot 8,9%. Dat is het hoogste percentage sinds begin jaren ’80. Ter vergelijking en relativering: ten tijde van de depressiejaren ’30 schoot het werkloosheidspercentage omhoog naar 25%.

Verlies voor Buffett
Ook Warren Buffett is vooralsnog niet geheel ongeschonden door de crisis heen gekomen. Zijn beleggingsvehikel Berkshire Hathaway Inc realiseerde over het eerste kwartaal een verlies van $ 1,5 miljard. Afschrijvingen op derivatenposities ($ 1,3 miljard) en een afboeking op een belang in olieconcern Conoco Philips ($ 1,9 miljard) drukten op het resultaat. De laatste keer dat Buffett een verlies moest rapporteren was in 2001. De grootmeester van het waarde beleggen stak de hand nadrukkelijk in eigen boezem en stelde dat de aankoop van ConocoPhilips, net op het moment dat de olieprijs piekte boven de $ 140 per vat, een ‘grote fout is geweest.’

Stresstest wassen neus
De uitkomsten van de stresstest van de Amerikaanse banken is bekend. Overall beeld: meevallend. Althans, zo lijkt het. Uit diverse hoeken valt op te tekenen dat een aantal grootbanken flink handjeklap heeft lopen spelen met de Fed en de uitkomsten heeft gedownplayed. De Wall Street Journal wist te melden dat de Fed toch een andere rekenmethodiek koos voor de bankratio’s dan waar de markt en analisten op rekenden. Verder konden banken volgens de Financial Times de kapitaalvereisten terugschroeven als de winstgevendheid voor de komende zes maanden hoger is dan waarin bij de stresstest werd gerekend. Tot slot nog maar een keer: de Amerikaanse minister van financiën Geithner had voorafgaand aan de uitkomst van de stresstest duidelijk gesteld dat ‘de overgrote meerderheid van de aan de test onderworpen banken over voldoende kapitaal beschikt.’ Nu blijkt dat tien van de negentien onderzochte banken toch kapitaal nodig hebben, heeft Geithner voor zichzelf een enorm geloofwaardigheidsprobleem geschapen, iets dat feitelijk ook opgaat voor de uitkomsten van de stresstests.

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Analysts Turning Bearish on S&P 500 After 14% Rally (Update1)

By Michael Tsang and Lynn Thomasson

May 11 (Bloomberg) -- The biggest earnings-season rally since 2002 has pushed 34 percent of the companies in the Standard & Poor’s 500 Index above analysts’ price targets for the next year, raising concerns about the pace of the recovery.

The S&P 500 is within 5 percent of the combined price projections of more than 1,700 securities analysts after gaining 14 percent since Alcoa Inc. reported first-quarter results on April 7. Caterpillar Inc., the largest maker of excavators, and Citigroup Inc., the bank rescued by $45 billion in U.S. taxpayer funds, are among 170 companies that trade above their average price estimates, data compiled by Bloomberg show.

So far, analysts have resisted lifting price and earnings targets after the S&P 500 surged 37 percent from a 12-year low in March. The combination of falling profit predictions, rising valuations and higher costs for options that insure against losses are raising investor concerns that the rally may have come too far, too fast.

“To expect this to continue to move onward and upward from here would be unrealistic,” said Leo Grohowski, chief investment officer at Bank of New York Mellon Wealth Management, which oversees $132 billion in New York. “It would be healthy for the market to take a breather and allow some of the fundamentals to catch up.”

With more than a third of the companies in the benchmark index for U.S. stocks overvalued compared with their price targets, the S&P 500’s fair value is 970.21, compared with its 929.23 close on May 8, according to data compiled by Bloomberg.

Historic Rally

The S&P 500 rose 5.9 percent last week, erasing this year’s losses, after results from the government’s examination of banks reassured investors and the Labor Department said the pace of job cuts slowed in April. Financial stocks led the measure’s advance, surging 23 percent.

Futures on the index lost 1.1 percent as of 9:09 a.m. today in London.

More than 200 companies in the gauge have risen at least 50 percent since this year’s low on March 9. Prices of almost half the companies in the measure are within 5 percent of the fair value target, according to data compiled by Bloomberg.

The S&P 500’s steepest nine-week rally since the 1930s began as the biggest U.S. banks said they were profitable in the first quarter, President Barack Obama outlined $787 billion in spending and tax cuts and the Treasury unveiled plans to finance as much as $1 trillion in purchases of lenders’ distressed assets.

Lack of Support

“Estimates suggest there isn’t that much further to run because equities are fairly valued,” said Hayes Miller, who helps manage $30.9 billion at Baring Asset Management Inc. in Boston. “Earnings growth for 2009 and 2010 can’t support prices too much higher than where we are today.”

S&P 500 companies beating profit forecasts outnumbered those that trailed by 2-to-1. A majority of companies in each of the index’s 10 industries posted results that beat projections, data compiled by Bloomberg show.

Caterpillar reported 14 times more per-share profit on April 21 than the consensus estimate. Since then, 15 of 19 analysts cut second-quarter forecasts by about 53 percent and 16 reduced their outlooks for the third quarter by 66 percent. No one covering Peoria, Illinois-based Caterpillar boosted estimates, Bloomberg data show.

The company’s 30 percent surge since its earnings release has pushed the shares to $39.64, 25 percent higher than the $31.83 analysts on average say the company is worth.

‘Sudden Jamming’

Nick Heymann at Sterne Agee & Leach Inc. in New York rates Caterpillar a “sell” and expects the stock will fall 39 percent, based on his price target of $24.

“We’re going to have a sudden jamming on the breaks of investors’ enthusiasm for early-cycle stocks when they realize they made a big mistake,” he said in a telephone interview last week. “If you’re not properly positioned in your portfolio, you may find that you go through the windshield.”

Since New York-based Citigroup reported per-share profit that was 48 percent higher than the consensus on April 17, more than 50 percent of the analysts reduced their estimates for the second quarter and half cut their projections for all of 2010, Bloomberg data show.

Shares of the bank surged 35 percent last week, leaving them overvalued by 33 percent, based on the average 12-month price target compiled by Bloomberg.

Starwood Estimates

Of the 17 analysts with estimates for Starwood Hotels & Resorts Worldwide Inc., owner of the St. Regis and W Hotels chains, 13 cut earnings forecasts for the second and third quarters since the company’s per-share profit in the first quarter beat projections by 300 percent, according to data compiled by Bloomberg.

Starwood, based in White Plains, New York, more than doubled to $22.08 from its low in March, lifting its market value to $4.12 billion. That’s $1.08 billion more than analysts say it is worth, based on price targets compiled by Bloomberg.

Goldman Sachs Group Inc.’s Steven Kent trimmed his profit estimates through 2011 and said on May 1 that “aggressive” cost cuts were behind the results from the first quarter. Kent, based in New York, recommended selling Starwood and says its earnings only support a price of $11, half its closing level last week.

The 17-month bear market hurt the credibility of Wall Street analysts and strategists who remained bullish during the worst year for stocks since the 1930s.

They were slow to recognize a recovery, which may force them to play catch-up as stocks climb, said Richard Bernstein, the former chief investment strategist at Bank of America Corp.

S&P 500 Forecasts

“We’re not real good at forecasting the future,” Bernstein, who left last month to start his own money-management firm, said during an interview in New York. “I used to tell everyone that the most-watched, least-important thing I do is the target on the S&P.”

Strategists said the index would rally 11 percent last year, according to data compiled by Bloomberg. It lost 38 percent instead.

Analysts overestimated earnings by an average 13 percentage points in each period between the third quarter of 2007 and the end of 2008. Better-than-expected first-quarter results haven’t prompted them to boost forecasts for the rest of 2009. Instead, they’ve ratcheted down predictions as the first global recession since World War II weakened demand.

Analysts said in March that profit among S&P 500 companies may drop 29 percent in the second quarter and 15 percent in the third before jumping 95 percent in the final three months of the year, according to data compiled by Bloomberg.

Steeper Drops

Now, they expect a 35 percent slide in second-quarter income and a 23 percent decrease in the third. The consensus is for profits to rebound 69 percent in the last quarter, with financial companies accounting for all of the gain.

Analysts project that companies in the benchmark stock index will earn $57.17 on a share-weighted basis this year, data compiled by Bloomberg show. Based on the measure’s closing price last week, investors are paying $16.25 for each dollar of forecasted profit.

That’s in line with the historic average of 16.3 times earnings over the past 128 years, data compiled by Yale University Professor Robert Shiller show. Strategists say stocks are fairly valued, predicting the S&P 500 will end the year at 949, with its companies producing per-share earnings of $47.06.

The estimate represents a gain of 2.1 percent in the next seven months as declining profits push the index’s price- earnings ratio to 20.2. That’s more expensive than any time in the past five years.

“The equity market has priced this recovery and then some,” said Barry Knapp, U.S. equity strategist at Barclays Plc in New York. “It looks pretty expensive to us.”

Rallied Past Projections

Knapp, the most bearish of the 10 strategists tracked by Bloomberg, says the S&P 500 will decline 19 percent from last week’s closing price, based on his year-end target of 757.

Gains have already pushed the index past projections from Barclays, Credit Suisse Group AG, Deutsche Bank AG, HSBC Holdings Plc and Morgan Stanley. None of the 10 forecasters polled by Bloomberg News has raised outlooks for 2009.

Leon Goldfeld, chief investment officer of the Hong Kong unit at HSBC Global Asset Management, which oversees more than $350 billion, said in an interview on May 4 that it’s “hard to see” enough profit growth to justify higher stock prices. The firm’s strategy will be to reduce its holdings of equities and move into bonds and cash, he said.

Chop and Grind

Options traders are increasing bets that the rally is about to end. Futures on the Chicago Board Options Exchange Volatility Index, which measures the cost of buying or selling options as insurance against declines in the S&P 500, are priced above the gauge’s level of 32.05.

The premium on VIX contracts expiring this month through November indicates traders are betting the stock index will fall in the next six months.

History also shows rallies from bear-market lows suffer setbacks before climbing. The last time U.S. stocks broke out of a bear market in 2002, a seven-week, 21 percent surge from the trough gave way to a 15 percent drop before the bull market resumed. In the Great Depression, a 47 percent surge after the stock-market crash in 1929 was followed by at least six retreats of at least 25 percent.

“We’re going to be in a very volatile, chop-and-grind type of market,” said Christopher Hyzy, chief investment officer at Bank of America’s private wealth management unit, which oversees $200 billion. He said the S&P 500 may retreat as much as 10 percent as investors focus on the ability of companies to increase earnings to pre-recession levels.

“We’ve been shown that there is a small light at the end of the tunnel, it’s dim but getting brighter, and that’s why stock prices have come this far this fast,” Hyzy said from New York. “Now, it’s all about ‘show me.’”

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Op maandag 11 mei 2009 11:30 schreef BlaZ het volgende:

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Wat word er eigenlijk bij welke statistiek meegeteld en wat niet? Makkelijk mee te rommelen die cijfers over werkloosheid.

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Op maandag 11 mei 2009 11:55 schreef SeLang het volgende:

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Hier gaat ie enigzins de fout in.
Die 16,3 is de Shiller P/E en is dus de P/E op basis van het 10 jaars gemiddelde. De Shiller P/E ligt daardoor doorgaans hoger dan de 'gewone' 1yr trailing P/E. Het gemiddelde van de gewone P/E (op basis van Shiller's data) ligt op 15,5.

Dus hierboven worden appels met peren vergeleken en zit hij dus zelfs nog iets te hoog met z'n schatting. Geen enorm verschil, maar ik vond het toch nodig om hier even op te wijzen

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Op maandag 11 mei 2009 12:05 schreef SeLang het volgende:

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Mwah...

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Maar ook op basis van die geprojecteerde winst van $57 die is genoemd in dat artikel staan we boven die 15,5.

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Op maandag 11 mei 2009 15:57 schreef SeLang het volgende:

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Goed, laat hem dan nu maar daad bij het woord voegen en beginnen de rente te verhogen

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Mortgages Over 5% Mean Fed Purchases as Bonds Slump (Update2)

By Daniel Kruger

May 11 (Bloomberg) -- The world’s biggest investors are increasing bets that Federal Reserve Chairman Ben S. Bernanke will boost purchases of Treasuries as the steepest losses on government debt since 1994 send mortgage rates above 5 percent.

The slump in Treasuries the past seven weeks pushed yields on longer-maturity bonds up by more than half a percentage point and sent average rates on 30-year mortgages to the highest since the start of April, according to North Palm Beach, Florida-based Bankrate.com. Policy makers said March 18 they were committing “greater support to mortgage lending and housing markets” when they pledged to buy as much as $300 billion of Treasuries and stepped up purchases of bonds backed by home loans.

BlackRock Inc., American Century Investments, Federated Investors and Pioneer Investment Management say it’s time to buy Treasuries because the Fed will need to expand its purchases to keep consumer borrowing costs from rising further. While higher bond yields, the 37 percent increase in the Standard & Poor’s 500 Index since March 9 and U.S. reports on housing and inventories show the economy may be stabilizing, Bernanke said May 5 that “mortgage credit is still relatively tight.”

“The Fed needs to consider increasing its purchases of Treasuries,” said Stuart Spodek, co-head of U.S. bonds in New York at BlackRock, which manages $483 billion in debt. Spodek said he resumed buying Treasuries. “We are still in a recession. It’s quite bad. They need to stabilize long-term rates.”

Fed Precedent

Reviving the housing market is critical to ending the longest recession since the 1930s. The National Association of Home Builders says the industry accounted for 13.6 percent of U.S. gross domestic product in the first quarter of 2009, down from 16.7 percent in 2005. GDP contracted at a 6.1 percent rate last quarter after shrinking at a 6.3 percent pace in the final three months of 2008.

There is precedent for the central bank to expand purchases. The Fed increased its commitment to buy mortgage bonds to $1.25 trillion in March from $500 billion when it said it would begin buying government debt in a policy known as quantitative easing.

“We think there’s a point very close to here where the Fed would act,” said James Platz, a fund manager at Mountain View, California-based American Century, which invests about $24 billion in bonds and resumed buying Treasuries. “We would expect at some point an announcement of additional buybacks.”

The Fed purchased $92.2 billion of Treasuries since the March 18 announcement, according to data compiled by Bloomberg.

Losing Streak

At the same time, 10-year note yields, a benchmark for consumer and mortgage rates, reached 3.38 percent last week, the highest since November and up from 2.46 percent on March 19, according to BGCantor Market data. Thirty-year mortgage rates are up from 4.85 percent on April 28.

Yields rose for seven weeks, the longest streak in five years. The benchmark 3.125 percent note due in May 2019, which was auctioned by the Treasury on May 6, ended last week at 98 20/32 to yield 3.29 percent. The yield declined to 3.21 percent today at 9:32 a.m. in New York.

Treasuries lost 3.93 percent this year, according to Merrill Lynch & Co.’s U.S. Treasury Master index, after gaining 14 percent in 2008 as investors sought a refuge from tumbling prices of securities tied to subprime mortgages. Losses and writedowns at the world’s largest financial institutions total $1.41 trillion since the start of 2007, Bloomberg data show.

‘Tight’ Credit

The declines are the most since Treasuries tumbled 4.94 percent at the same point in 1994, according to Merrill Lynch indexes. That year, the Fed raised its target rate for overnight loans between banks to 5.5 percent from 3 percent in an effort to contain inflation. Treasuries ended up losing 3.35 percent for all of 1994, before returning 18.5 percent in 1995 and 2.61 percent in 1996, including reinvested interest.

Thirty-year mortgage rates as measured by Freddie Mac rose to 9.25 percent on November 1994, from 6.74 percent in 1993, before falling to 6.94 percent in February 1996.

Home prices have declined for 31 straight months and are down 31 percent from their peak, according to S&P/Case Shiller indexes. Mortgage applications to purchase a home remain below the high reached in September when rates averaged 5.94 percent, Mortgage Bankers Association and Bankrate.com data show.

“The supply of mortgage credit is still relatively tight, and mortgage activity remains heavily dependent on the support of government programs or the government-sponsored enterprises,” Bernanke told the Joint Economic Committee of Congress on May 5.

Thawing the Freeze

Bernanke succeeded in narrowing the difference in yields between mortgage securities, which also influence home loan rates, and Treasuries.

The gap between the 30-year current coupon Fannie Mae bond and the benchmark 10-year Treasury shrank to a 15-year low of 0.77 percentage point on May 6. It averaged 1.23 percentage points in the five years prior to the collapse of Lehman Brothers Holdings Inc. in September. Thirty-year mortgage rates are down from 6.46 percent in October.

Other lending rates also show Fed efforts to thaw frozen credit markets are working, which may reduce pressure on policy makers to step up purchases of Treasuries.

The London interbank offered rate, or Libor, for three- month dollar loans fell to a record 0.92 percent. The difference between Libor and what the Treasury pays to borrow for three months, the so-called TED spread, was 0.72 percentage point, the narrowest in almost a year and down from 4.64 percentage points on Oct. 10.

Bond Switch

Investors anticipating an expansion of the Fed’s Treasury purchases were disappointed after the Federal Open Market Committee’s April 29 meeting, when policy makers left the size of planned buybacks unchanged and said the economy is showing signs of stability. Yields on 10-year notes rose 16 basis points, or 0.16 percentage point, to 3.16 percent that week, the biggest increase since the period ended Feb. 27.

Treasuries are falling in part because investors are switching to higher-yielding assets on signs the worst of the recession is over.

Unemployment in the U.S. grew by the smallest amount since October last month. Payrolls fell by 539,000, after a 699,000 loss in March, while the unemployment rate rose to 8.9 percent, the highest level since 1983, the Labor Department said May 8. The Commerce Department said the same day wholesalers reduced supplies of unsold goods for a seventh month in March.

Corporate Debt Sales

“People are feeling a little bit more comfortable that the economy is not getting as bad as it was,” said Richard Schlanger, who helps invest $13 billion in fixed-income securities as vice president at Pioneer Investment in Boston. “There has been a slight migration out of the safe-haven mentality.”

Besides the gain in stocks and the drop in the rate banks charge to lend to each other, U.S. companies including New York- based Morgan Stanley and Bank of America Corp. in Charlotte, North Carolina, have sold more than $500 billion of bonds, according to Bloomberg data.

There is still plenty of incentive for Bernanke to contain borrowing costs as job losses threaten to restrain consumer spending after a first-quarter rebound, according to economists surveyed by Bloomberg News last month.

The government is likely to sell a record $3.25 trillion of debt this fiscal year ending Sept. 30, according to Goldman Sachs Group Inc., to finance bank bailouts, economic stimulus plans and fund a growing budget deficit.

Consumer credit in the U.S. contracted by a record $11.1 billion, the most since records began in 1943, to $2.55 trillion in March, according to a Fed report released May 7.

“If all of a sudden this rise in the 10-year yield feeds into higher all-in mortgage rates, that’s when we think the Fed will come in with a vengeance” to increase its Treasury purchases, said Joseph Balestrino, a money manager at Federated Investors in Pittsburgh, which oversees $21 billion in bonds. “We are a buyer.”

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Op maandag 11 mei 2009 16:51 schreef rvlaak_werk2 het volgende:

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Heel veel tekst voor de maandagmiddag... Heb je een (korte) samenvatting?

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Op maandag 11 mei 2009 17:13 schreef rvlaak_werk2 het volgende:

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Dank. Maar uhm... de val van de dollar is toch al lang niet meer tegen te houden? Of ben ik nou te pessimistisch?