Offshore
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Hidden Value Gems
6. To What Extent Have Buyers Made Exceptionally Extended Forward Purchases?
"We apply this gauge to all markets and find it particularly helpful in commodity and real estate markets. In the equity markets, we look at indicators like capital expenditures—whether businesses are investing a lot in infrastructure, factories. This gauge is at the 38th percentile, a bit less bubbly than our other measures."
8/9
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6. To What Extent Have Buyers Made Exceptionally Extended Forward Purchases?
"We apply this gauge to all markets and find it particularly helpful in commodity and real estate markets. In the equity markets, we look at indicators like capital expenditures—whether businesses are investing a lot in infrastructure, factories. This gauge is at the 38th percentile, a bit less bubbly than our other measures."
8/9
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Offshore
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Hidden Value Gems
5. Are Purchases Being Financed by High Leverage?
"Our leverage gauge, which looks at the leverage dynamics across all the key players, looks healthy—at around a 23rd percentile reading."
7/9
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5. Are Purchases Being Financed by High Leverage?
"Our leverage gauge, which looks at the leverage dynamics across all the key players, looks healthy—at around a 23rd percentile reading."
7/9
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Offshore
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Hidden Value Gems
4. How Broadly Bullish Is Sentiment?
"Sentiment in the market is now neutral to slightly positive—not in bubble territory."
6/9
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4. How Broadly Bullish Is Sentiment?
"Sentiment in the market is now neutral to slightly positive—not in bubble territory."
6/9
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Offshore
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Hidden Value Gems
3. How Many New Buyers Have Entered the Market?
"This gauge shot above the 90th percentile in 2020, which by other measures appeared to be in a bubble. Today, the activity of new buyers is a bit higher than typical—55th percentile—but not particularly concerning."
5/9
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3. How Many New Buyers Have Entered the Market?
"This gauge shot above the 90th percentile in 2020, which by other measures appeared to be in a bubble. Today, the activity of new buyers is a bit higher than typical—55th percentile—but not particularly concerning."
5/9
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Offshore
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Hidden Value Gems
"Nvidia’s two-year forward P/E is around 27 today, reflecting that, even as the market cap has grown ~10x, earnings have also grown significantly and are expected to continue to grow over the next year or two because of actual orders that we can validate. During the tech bubble, Cisco’s two-year forward P/E hit 100. The market was pricing in far more speculative/long-term growth than we see today."
4/9
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"Nvidia’s two-year forward P/E is around 27 today, reflecting that, even as the market cap has grown ~10x, earnings have also grown significantly and are expected to continue to grow over the next year or two because of actual orders that we can validate. During the tech bubble, Cisco’s two-year forward P/E hit 100. The market was pricing in far more speculative/long-term growth than we see today."
4/9
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Ben's Bites
Stack Overflow and Google Cloud are budding up
The developer question-answer forum will integrate its massive data store with @Google’s AI tools
There’s no mention of training on this data (and that might not matter much)
Here's why: bensbites.beehiiv.com/p/stac…
tweet
Stack Overflow and Google Cloud are budding up
The developer question-answer forum will integrate its massive data store with @Google’s AI tools
There’s no mention of training on this data (and that might not matter much)
Here's why: bensbites.beehiiv.com/p/stac…
tweet
Offshore
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Hidden Value Gems
2. Are Prices Discounting Unsustainable Conditions?
"This measure calculates the earnings growth rate that is required to produce equity returns in excess of bond returns. Currently, this indicator is just around the 67th percentile for the aggregate market—more elevated than some of our other readings."
3/9
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2. Are Prices Discounting Unsustainable Conditions?
"This measure calculates the earnings growth rate that is required to produce equity returns in excess of bond returns. Currently, this indicator is just around the 67th percentile for the aggregate market—more elevated than some of our other readings."
3/9
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Offshore
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Hidden Value Gems
1. How High Are Prices Relative to Traditional Measures?
"The current read on this price gauge for US equities is around the 73rd percentile."
"Looking at the Mag-7, we are reading Alphabet and Meta as somewhat cheap, and Tesla as somewhat expensive. We’d call the group in aggregate fairly priced."
2/9
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1. How High Are Prices Relative to Traditional Measures?
"The current read on this price gauge for US equities is around the 73rd percentile."
"Looking at the Mag-7, we are reading Alphabet and Meta as somewhat cheap, and Tesla as somewhat expensive. We’d call the group in aggregate fairly priced."
2/9
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