Toro's Running of the Bulls Market Blog

China Pimping Silver

From RealMoney last week.

Recent Returns

Returns for a variety of indices.

BXX (bank index) +32% since July 22
KRX (regional bank index) +23% since July 22
DJUSRE (REITs) +44% since July 10
S&P500 +12% in 2009
Nasdaq +27% in 2009
S&P/TSX Composite in US$ +36% in 2009
Brazil in US$ +91% in 2009
Shanghai Composite +79% in 2009

That is getting frothy.

But thus far, it shows no signs of slowing down.  Every time the shorts wade in on perceived weakness, they get burned.

Canada Farmland

Investing in farmland is becoming in vogue these days so I wanted to see how well prices of farms have done as of late.  Below are the growth in farmland values for Canada, which were attained from Farm Credit Canada.  I will address American farmland in a future post.

S&P 500 Earnings Per Share: $1

Well, $1.27 actually.

These are the reported earnings per share from Standard & Poor's for the S&P 500 index, which you can find here.  The last two quarters of 2008 and the first quarter of 2009 are actual earnings.  The second quarter of this year is comprised of roughly half reported earnings and half expected earnings from companies yet to report.

Q2 09  $7.52 (53% of companies reporting)
Q1 09  -$23.25
Q4 08  $9.73
Q3 08  $12.86
Total    $1.27

S&P 500 Sales Per Share Falling

Even though earnings have been beating estimates, sales per share for the market is still falling from a year ago.

Rising on Light Volume

As stocks rise, volume has been trending lighter. You can see the trends in volume declining from the March lows.

Stocks No Longer Inexpensive

A couple of months ago, we here at Running of the Bulls were pounding the table on the generational opportunity to buy stocks as equities were trading at multi-decade low valuations.

Since that time, stocks have risen over 40% off the March 6 bottom.

And with the meteoric rise, valuations are no longer attractive. 

Invest in France, Have Your Building Blown Up

From the Financial Times.

Workers at a failed French car parts supplier are threatening to blow up their factory unless the company’s two biggest clients – Renault and PSA Peugeot Citroen – stump up extra compensation.