While GDP can be helpful, there can be a disconnect between real GDP growth and actual equity market performance, where a lackluster stock market can exist in a country whose GDP regularly exceeds 6.5-7%.
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Matt Cavallaro is an equity analyst for stock market education company BetterTrades.com.
While companies like A123 have been able to raise significant amounts of equity in the stock market when investor sentiment is high, relying upon the whims of the marketplace is not a good financial strategy, particularly when a company does not have a clear path to profitability.
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Overall, executive pay levels will continue to increase at little more than an inflationary pace, with perhaps modestly higher increases in equity incentives if the stock market holds up.
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But not the U.S equity market, with the VIX (the Volatility Index, a measure gauging future anticipated stock market volatility) trading at an astonishingly low level.
Interestingly, while majority parties in both the house of Representatives and the Senate didn't seem to have much impact on equity market returns, on average, the party affiliation of the President did: the mean return of the stock market during years with a Democratic president averaged 15.1%, while with Republican presidents, it averaged only 8.6%.
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The U.S. equity markets are outperforming nearly every major stock market this year, but high net worth investors think their financial advisors have missed the upside.
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But on paper Ben Bernanke, cheap debt, and a rising stock market have rescued private equity from suffering a complete disaster from the buyout boom of 2005 to 2008, when private equity firms raised and invested unprecedented sums of cash.
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"The strength of Nasdaq's brand and its pre-eminent position in the US equity market will make our single-stock futures offering a compelling choice for both retail and institutional customers in the US, as well as in Europe and beyond, " said Liffe chairman Brian Williamson.
One of the most important problems for small business is equity capital (not bank lending) the stock market has done nothing for ten years.
With CEO pay increasing 27 times faster than worker pay since 1978 a substantially greater increase than the value of corporate equity as measured by the growth of the stock market during the same period and far more substantial than the measly 5.7 percent growth in employee wages over the same time frame the stellar profit numbers should not come as a great surprise to anyone.
The secondary market for private equity assets appears to have strengthened radically this fall, along with the dramatic rise of the stock market and as non-traditional players have emerged as interested buyers in the secondary market for private equity fund stakes.
In another contest, the U.S. stock market outperformed many developed and emerging equity markets for the year as of the end of August.
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The acceleration in buyouts and buybacks will keep creating a booming world stock market by shrinking the supply of equity while boosting earnings per share.
Charter Equity analyst Edward Snyder raised his rating on the stock to Market Perform from Market Underperform.
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That may sound scary, but even that outcome doesn't necessarily translate into a slumping stock market, says Tobias Levkovich, an equity strategist at Citigroup.
Next Generation Equity Research's Davies blames overall weakness in the stock market, as well as discontent related to recent earnings guidance from the company.
Stock market mispricing induces the controlling shareholder to sell overpriced equity, subsequently diverting resources to his benefit.
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During the last few turbulent years in the financial markets, it has been a pillar of relative stock-market strength, a kind of haven for equity investors.
Yesterday, as I noted in a blog post suggesting it is time for the company to find some new leadership, Charter Equity analyst Edward Snyder reduced his rating on the stock to Underperform from Market Perform.
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India's stock market has fallen 44% in a year, global equity prices 39%.
Because of stock market strength and a higher 30-Year bond yield, equity valuations are less undervalued and more overvalued.
No dividend income, no current year stock sale, no indication that the President is involved in the equity market at all.
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In 2009, Jessops managed to avoid administration by agreeing a debt for equity swap with its lender, HSBC, that saw it taken off the stock market.
Trillions of dollars have entered into the bond market through mutual funds over the past decade, as investors sought safety after the equity bear markets of 2000-2002, and fueled further by the broad stock market collapse in 2008.
Stock market strength and a higher 30-Year bond yield have pushed down equity valuations.
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If the stock market goes down--thus expanding the spread-- the private equity firm can mark up its companies and sell them to other companies.
Some private equity firms have been able to exit some of their investments by listing them on the stock market amid a stronger IPO environment in the last few months.
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With long-term investment horizons, life insurance companies in developed economies are important investors in the stock market, as well as in the private placement markets for debt and equity securities issued by small- and medium-sized enterprises.
Motivated by the growing literature studying the effects of stock market mispricing on firm behaviour (see for example Stein 1996, Shleifer and Vishny 2003, and Baker 2009), we develop a simple framework for thinking about how stock market mispricing can offset agency costs and induce controlling shareholders to raise outside equity.
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