Inflation remains well contained throughout the world especially in Switzerland and Japan. Global economic growth is still moving forward. Russia is enjoying excellent trade conditions. Europe and UK struggle with declining production. USA is enjoying one of the best employment environments in decades.
Consumer confidence is increasing in most of the globe, except Japan, while inflation remains under control. USA housing market has softened slightly but remains healthy. Earnings and dividend rankings continue to move downward for most, but there are still some exceptional stocks with increasing rankings.
European PMI soft while French and German PMI moves up. Russia sees some welcome relief in PPI, and USA enjoys some of the best employment numbers in the counry’s history. Twelve stocks receive changes in Fair Value, 11 down, 1 up. Mostly due to lower earnings and dividend ratings. CBS, CE and DAL become BUY considerations while APEI and NFLX move in to SELL category.
Canadian manufacturing and wholesale sales slow, Japan and Spain experience trade deficits, UK enjoys a continuing improvement in unemployment rate. U.S. existing home sales continue to slow. More stocks return to Buy Watch consideration.
Economic news from around the world is very mixed with South Korea enjoying one of the best growth periods in a year and Germany able to hold increases in producer prices to a 2.7% increase. China continues to experience slower economic growth, but not dramatic with a GDP of 6.4% and retail sales increase of of over 8%. These numbers are high, but not as high as previous periods. Overall, growth appears to be on the positive side, just a bit slower than previously expected by the markets.
USA CPI drops to 1.9% in December, below Federal Reserve target of 2.0%, UK Industrial production falls 1.5% YOY, Italian industrial production falls 2.6% YOY, Spanish industrial production falls 2.6% YOY. BioTelemetry increases in Fair Value, PetMed Express moves to BUY.
All Market Capitalization Categories Remain Well Inside Normal Valuation Levels with MidCap Holding Highest Expectations. Current Market Considerations Remain Tilted to Buy/Buy Watch Classifications as Opposed to the Strong Sell/Sell Watch Tilt that Developed in 2018.
There are several new market index additions that will appear throughout the service. We have added an International Aggregate Bond Index [IAGG]. Since the Aggregate Bond Index [AGG] is predominately USA domestic we wanted to add a broad representation of the global bond market. International High Yield Corporate bond has also been added with the HYXU index to complement the International Investment Grade Corporate Bond Index [IBND].
USA LargeCap stocks continue to move to the Undervalued side of market neutral range and now are nearly 4 points under 100% fair value at 96.1% Fv. Nineteen of the thirty-six sectors are now under this level which is 63.3% of the total market. Eight of the ten LargeCap sectors are now below this level and on the undervalued side of 100% Fv, but still in market neutral range. Selling has gone well beyond rational levels.