Tag: stocks
The brief’s key findings are: To assess whether stocks are overvalued, analysts often compare stock prices to companies’ cyclically-adjusted (10-year average) earnings. Today’s ratio of stock prices to cyclically-adjusted earnings appears high, which has often signaled a pending fall in prices. However, cyclically-adjusted earnings are unusually low right now because they include two recessions. As…
Abstract Using data on all employees at listed companies in Taiwan, we find that the bias toward employer stocks is generic to individual investor decision-making, but not limited to retirement plans. 71 percent of sample employees invest in employer stocks and the employer stocks make up on average 47 percent of employee equity portfolios. T…
