Four new companies have been added to the consideration list for the 5G model portfolio.
1. ADVA, 2. Cisco, 3. Western Digital, 4. Xilinx. As a result of the analysis no stocks were added to the model portfolio.
The Dynamic CMA USA Portfolio asset allocation is designed to use the information gained from relative valuations to adjust asset allocation within the portfolio. The alignment moves toward increasing conservativeness as market and sector valuations approach overvalued positions and moves toward higher aspirational positions when market valuations move toward undervalued positions.
Inflation remains well contained throughout the world especially in Switzerland and Japan. Global economic growth is still moving forward. Russia is enjoying excellent trade conditions. Europe and UK struggle with declining production. USA is enjoying one of the best employment environments in decades.
Each stock’s respective profitability and revenue ranking slider chart has both a ranking for the individual stock within the complete universe and the position of the stock’s peer group in terms of market capitalization (Large, Mid, Small) and GIC sector (Energy, Materials, Industrials, etc.). This permits a quick comparison as to whether the stock is performing well in the complete market as well as within the stock’s peer group.
The market benefited from the 4th quarter “adjustment”. Markets have returned to earlier pricing levels with improved relative valuations. The total market has a better valuation, fair rather than overvaluation, at the same pricing level of mid-2018.
Last year there was every sign of a market heading full tilt into overvaluation. Today, valuations are a better reflection of market conditions than either February a year ago, or December. Last year was full of high expectations and a never ending “synchronized global growth” melody, followed in December by a good rendition of “The Sky is Falling”. Today’s valuations are realistic
New Core considerations: AT&T, Lamar Advertising, Medical Properties, Edison Intn’l, Market considerations: CBS, GM, Goodyear, MetLife, Principal Financial Grp, General Dynamics, MSC Industrial, LSC Communications, Alaska Air Grp, Delta Air Lines, TE Connectivity, Celanese, Eastman Chem, Vulcan Materials, Jones Lang LaSalle, and Aspirational: Anadarko Petroleum, Newfield Exploration.
This is the first published run of the Canadian Fair Value Report 2019 February – Preliminary. Consider it a Beta Test Draft. There could be errors, mistakes and omissions in the report. Please use caution. Do not use this report for anything except casual review.