Investment Strategy Network, an investment tool designed to assist in the decision-making process for investors
Investment Strategy Today
Market expectations were continually increasing to the point of overvaluation across all market capitalizations, but especially in MidCap and SmallCap classes. The market in total was well in cautionary position. While no one ever knows the exact time, it seemed reasonable the market would need to return to fair value. This generally occurs when investors realize their expectations exceed the ability of stocks to return value through revenues, earnings and dividends. That time appears to be occurring as the market is nicely returning to fair value territory.