Update Economic USA Housing
New home sales statistics were recently released and they continue to show a developing market where prices are increasing which correspondingly slowed demand. There is a lower level of supply available across the entire housing marketplace. New home sales dropped 9.4% for the month, but year-over-year activity is up 9.2%. The sales period, the time new homes stay on the market For Sale, is down to 2.9 months from a previous 3.6 months just a year ago; all signs of a tightening market; good for suppliers and, not as good for buyers. Fortunately, the market is not showing signs of stress, but rather a normal activity when supply and demand are tilted to higher demand and moderate supply.
Update USA Asset Allocation
Large Cap stock allocations represent the majority of the stock allocation starting at 7.7% climbing to 68.9%, representing a 0.2 point increase from the last report. There is a similar allocation in both Mid and Small Cap areas that range from 0.6% at the Stable level for Mid Cap and 5.3% at the Opportunity level which is a 0.1% decrease. Small Cap experiences the same rate of growth starting at 0.3% climbing to 3.0% when it reaches Opportunity levels a reduction of 0.1 points from the last report.
USA Stock Considerations
Selling pressure appears to be mitigating across all market capitalization areas, especially in the smaller capitalization category. Midcap has withdrawn from cautionary territory returning to fair value ranges. Currently, 85.8% of stocks are within their normal trading range and considered a Hold. This is 13.9 point change from this time last month reversing an earlier trend toward the Sell and Sell Watch classifications. Valuation distribution has moved toward normal trading values as Sell/Sell Watch classifications dropped to 8.2% and Buy / Buy Watch classifications dropped 2.0 points to 6.0%.
USA Fair Value Change Report
Applied Optoelectronics and Northrup Grumman both receive higher Fair Values
USA Stock Consideration Change Report
Perry Ellis moves into Buy Consideration