Investment Strategy Today
Consumer credit default rates remain stable indicating no signs of stress. Combined with annual wage increases of 4.0% and inflation stuck at 2.0% the consumer is showing good signs of being able to maintain the current level of debt and debt service. Bank credit card default rates remained unchanged at 3.09%. Auto loans and first mortgage defaults increased only 0.001% to 0.93% and 0.64%, respectively.
USA Stock Consideration Report Mid-December
Valuations are near neutral at 102.3% Fv. The rate of negative adjustment continues to slow giving up just 1.4 valuation points, again half of the previous period rate, which was also half of the prior rate. LargeCap surrendered the most last period, but this time Smallcap gave up 7 times what LargeCap surrendered and MidCap gave up three times as much.
Investment Strategy Today
Sector fair value has been added to each stocks fair value ranking slider and respective sector plots have been added to the historical chart.
New Additions to Service: Each Stock’s Respective Sector added to Stock Chart and Percent Fair Value Slider
Previously, the stock comparison chart plotted the individual stock’s history since 2013 along with the market. The market was indexed to the same starting period as the stock plot. Today, we started to add the stock’s respective sector history plotted over the same time period. The sector plot is also indexed to the same starting period as the stock and the market. The sector history is shown with a dotted red line against the market black dotted line and the stock solid blue line. This now enables a quick comparison view across all three histories.
Investment Strategy Today
Eight stocks move into Buy Consideration while total market is within 6 points of 100% Fair Value.