Category: Stocks

Expectations increased slightly for large cap market capitalization stocks to 106.0% an increase of under one percentage point while mid cap expectations increased to 116.5% up from 115.3% and small cap was nearly unchanged at 111.3%. Over valuation pressures remained in check even with large cap stocks posting over a 15% return for the year followed by mid cap with over 10% and small cap remaining positive at nearly 7%. Small cap has struggled all year trying to post positive results, so reaching this level of return without exceeding normal valuations is welcomed.

Selling pressure appears to have stabilized after last month’s drop. Midcap has moved well into fair value territory after spending most of 2017 in cautionary levels. Even smallcap lowered the overvalued stress from earlier in 2017 and is now comfortably in fair value range. Both of these market capitalization areas experiencing lower overvalue stress is comforting given the strong total return performance of the most recent 90 days. Smallcap advanced from a loss of 2.44% to a gain of 8.52% while midcap advanced nearly 8 percentage points reaching 10.00% for the year to date.