The Canadian market has moved 1.50 points closer to fair value over the past month but remains slightly over valued at 104.40%. This is well within what is considered a fair value trading range (80.0% to 130.0% Fv). The market remains highly centered within the fair value range on both an average and median measure. See the full report with individual stock and sector details under: Clients Services > World Markets
Approximately, 23% of the market is in the SELL WATCH/SELL classification and 17% in the BUY WATCH/BUY classification. This is a much better, balanced condition, than what we experienced at the end of 2017 when 24% was solidly in the SELL/Overvalued classification and only 11% in the BUY/Undervalued classification. This lopsided condition continued to get worse until the last quarter of 2018 when stock prices reversed and relative valuations on the SELL classification returned to normal. The current levels of 11% SELL and 9% BUY are supportive of continued improvement in the market. Please do not equate that to a belief that the market will never go down again, because it will, but it is true that relative valuations can support higher market values for some time into the future.
Since the beginning of the stock exchange in 1792, the concept of stocks moving together in a market has been taken as a given. This long held belief of synchronous or similar stock price movements is true in the majority of cases, but not as strong as many investors believe.