The excellent start to 2019 has created returns that in most cases, exceeding historical long-term performance. However, stock growth has slowed somewhat over the past several weeks with most performance numbers showing red for early March. Fortunately, this earlier growth activity has placed the markets very close to where they were in 2018 at this time of year. The FULL REPORT & TABLES AT: Client Service > World Markets > Americas > USA Stock Consideration Report
Global economic data is mixed but with a gentle slowing of growth. It is a slower rate of growth, not the end of expansion. Inflation is tame throughout the developed world which frustrates central bankers with interest rates at historically low rates. Maybe we are establishing new “historical” rates. Sometimes history becomes the current environment.
The Canadian Fair Value analysis includes 212 securities that cover the entire market (Large, Mid and SmallCap) and all 11 GIC sectors.
Currently, the Canadian market is at Fair Value (99,53% Fv). All 11 sectors are trading within the Fair Value range (80.0% Fv to 130.0% Fv).
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.