Category: Investment Strategy Today
Was Last Week Unusual or Just Another Volatile Market?
A look shows that NASDAQ has more extreme days than the Global Equity Index (kurtosis). Mathematically that is shown by greater SD (1.2%) of the NASDAQ compared to the World Index (0.7%) Not only was NASDAQ more volatile this past week than Global Equities, it was more volatile than its own historical volatility range.
Bruce’s View
The charts presented today represent the last 90 days, the last 5 years and going back to 1969. These are interesting views, especially depending on which time period you wish to concentrate upon. We believe the correct view is a combination of several time periods and an understanding of how the USA market has performed relative to global markets and the underlying economy.
Investment Strategy Today
The overall market is back in fair value at 106.6% Fv with LargeCap the closest to 100% Fv at 104.7% Fv. Expectations have clearly been adjusted and closer to reality.
Investment Strategy Today
Stock price movements took a wild ride during the week ending 26 October and more than usual. The analysis shows how specific sectors were impacted more than the market and greater than normal. Specific stocks were especially unsettling such as Amazon and Microsoft.
Investment Strategy Today
The total market is now only 8.7 points above 100% fair value (Fv) having dropped from 132.0% Fv earlier this year. The market in total and all market capitalization levels are well within fair value range. Over 40 stocks moved into UnderValue territory.