Category: Investment Strategy Today
Investment Strategy Today – Americas
USA University of Michigan Sentiment drops -1.5% year-over-year, Canadian Inflation declines -1.8% YOY but moves up 0.5% for August MOM.
Bruce’s Japan View
After many false starts Japan has come to life over the past few years and possessing reasonable world normal PERs and yields it can continue to rise if the economy justifies it.
Steve’s USA View
The stock market should be ecstatic, but has only been able to produce a 2.44% increase (AllCap) on track to a below average year. So, what is happening?
Steve’s U.S. View
Valuations moved closer to 100% fair value (Fv). LargeCap is only 10 points away from this level. MidCap stands at 118.4% Fv with SmallCap at 115.0% Fv. There is a very good probability that the S&P Index (IVV) could reach $285/share over the next 12 months which places the DOW around 26,100.
Steve’s U.S. View
We started the month with markets above fair value by a moderately high, but reasonable level. MidCap and SmallCap were slightly elevated in the teens, but they were not unreasonable. With investor expectations on the positive side, above 100.0% Fv, major events such as a change in central bank policy and the thought of a global trade slowdown pushed markets lower. The direction was unwanted, but rational.