Category: Investment Strategy Today

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.

USA LargeCap stocks move to Undervalue side of market neutral range at 99.3% Fv. Twenty-seven stocks move into Buy Watch range while fourteen return to fair value range after being considered overvalued.

Consumer credit default rates remain stable indicating no signs of stress. Combined with annual wage increases of 4.0% and inflation stuck at 2.0% the consumer is showing good signs of being able to maintain the current level of debt and debt service. Bank credit card default rates remained unchanged at 3.09%. Auto loans and first mortgage defaults increased only 0.001% to 0.93% and 0.64%, respectively.

Sector fair value has been added to each stocks fair value ranking slider and respective sector plots have been added to the historical chart.