The market benefited from the 4th quarter “adjustment”. Markets have returned to earlier pricing levels with improved relative valuations. The total market has a better valuation, fair rather than overvaluation, at the same pricing level of mid-2018.
This is the first published run of the Canadian Fair Value Report 2019 February – Preliminary. Consider it a Beta Test Draft. There could be errors, mistakes and omissions in the report. Please use caution. Do not use this report for anything except casual review.
This is a NEW report from ISN that covers the French market. Fair values are calculated along with targets for Overvaluation and Undervaluation and the traditional percent current prices represent of fair value. This report will soon appear under the World Markets menu.
This is a NEW report from ISN that covers the British market. Fair values are calculated along with targets for Overvaluation and Undervaluation and the traditional percent current prices represent of fair value. This report will soon appear under the World Markets menu.
The markets made some large-scale changes in character that started early in 2018, built up throughout the year and changed direction in the 4th quarter. Valuations increased throughout 2018 moving well into overvaluation and adjusted back to fair value in the 4th quarter of 2018. Several market areas moved past fair value neutral (100% Fv) and on to the undervalued side. All of the markets have returned to the overvalued side of neutral fair value but remain well within fair value range.
Overall, stocks have started to shift away from being overvalued and returned to fair value while an increasing number have become undervalued. Valuations are solidly back in fair value ranges (80.0% to 120.0%), but investor views are still adjusting from previous unrealistic expectations. See the full report and stock directories under the menu Client Service > World Markets > USA Stock Considerations Report.
Performance in terms of price return certainly created changes in the year-to-date values as well as last 12 months, quarter and month scores. There was also some welcome relief in relative valuations. Valuations came back closer to Fair Value (100.0% Fv) with reductions of 10 to 24 points.
Outside of Consumer Discretionary the remaining sectors are producing valuations within normal ranges. Only two sectors reside at Cautionary levels, Energy at 129.8% Fv and Information Technology at 124.9% Fv. Energy has made a significant move over the past 24 months from undervaluation to the high ranges of normal.