USA Stock Only Consideration Model Portfolio
The USA Stock Only portfolio experienced three stocks that reached an overvaluation level recently and were retired from portfolio consideration today.
Asset Allocation Discussion
In this brief we offer a discussion on a practical method of how asset allocation can be used to satisfy an investor’s desire for stability and opportunity within an investment portfolio. It is our objective to create a solid basis for understanding changes in allocations when considering objectives, risks and market characteristics.
USA Stock Considerations
Currently, 70.7% of stocks are within their normal trading range and considered a Hold. This is 2.9 points lower than this time last month and 7.4 points lower than 2 months ago. The distribution has tilted toward the Sell/Sell Watch side of the scale by 2.7 points which is following a 2.9 points tilt to this side last month. Buy and Buy Watch side gave up 0.3 points. Currently, 8.4% of the market is considered a Buy or Buy Watch while 21.0% of the market is considered a Sell or Sell Watch.
USA Stock Consideration Change Report
Acorda Therapeutics, Avnet, Spectrum Pharm all become Buy considerations. Almost Family, Broadcom, Bob Evans Farms, Cable One, Cooper, Electronic Arts, Ecolab, Equinix, Micron Tech, Perkin-Elmer, Ruth’s Hospitality, Whole Foods all move to Sell consideration.
Amazon to Acquire Whole Foods – Why?
Amazon is acquiring Whole Foods for $42/share, a price that reflects 132.6% Fair Value (Fv). Whole Foods is currently trading at 104.4% Fv. Acquisition of a grocery makes sense, but not Whole Foods.