USA Stock Fair Value Report – 2019 January
The markets made some large-scale changes in character that started early in 2018, built up throughout the year and changed direction in the 4th quarter. Valuations increased throughout 2018 moving well into overvaluation and adjusted back to fair value in the 4th quarter of 2018. Several market areas moved past fair value neutral (100% Fv) and on to the undervalued side. All of the markets have returned to the overvalued side of neutral fair value but remain well within fair value range.
Investment Strategy Today – January 10
All Market Capitalization Categories Remain Well Inside Normal Valuation Levels with MidCap Holding Highest Expectations. Current Market Considerations Remain Tilted to Buy/Buy Watch Classifications as Opposed to the Strong Sell/Sell Watch Tilt that Developed in 2018.
Stock Market & Sector Influence – USA
Since the beginning of the stock exchange in 1792, the concept of stocks moving together in a market has been taken as a given. This long held belief of synchronous or similar stock price movements is true in the majority of cases, but not as strong as many investors believe.
Investment Strategy Today – January 3
There are several new market index additions that will appear throughout the service. We have added an International Aggregate Bond Index [IAGG]. Since the Aggregate Bond Index [AGG] is predominately USA domestic we wanted to add a broad representation of the global bond market. International High Yield Corporate bond has also been added with the HYXU index to complement the International Investment Grade Corporate Bond Index [IBND].
USA Stock Consideration Changes – January
Stocks continue to move into HOLD classification. Now 67% of the total market.