Investment Decision Tools for Portfolio Management
The Investment Strategy Network (ISN) web product is an investment tool designed to assist in the decision-making process of both private and institutional investors.
World Market – USA – Fair Value Report December 2019
As the market moves upward it appears to be well deserved because the market value is now within 1.8 points of fair value. We sometimes wonder if the overwhelming amount of “concern” that has been …
World Market Fair Value Report – USA
Overall fair value influence moved slightly in favor of revenues and earnings along with a slight decline in the importance of dividends. Large Cap stocks matched the overall market with slight increases in the influence of both revenues and dividends, but also experienced a 1-point increase in dividend influence. MidCap stocks experienced drops in the influence of all three areas in relationship to the total market. However, the drop in earnings influence was larger than the overall market. Small Cap moved in the opposite direction of Mid Cap with increases in all three. Earnings made the largest influence increase that exceed 1 point.
World Market Stock Consideration Report – USA
There is increasing caution over earnings reports that will start coming out soon for the 3rd quarter. If they are disappointing, the resulting move downward in prices should not force valuations to become excessive because prices are currently near fair value. It would be more damaging if market prices were in overvaluation range and earnings disappointed. Investors appear to be preparing for disappointing earnings. If the earnings do not disappoint, there most likely will be a significant move to the upside.
World Market Fair Value Report – USA
All market capitalization classifications are within 10 percentage points of fair value (100.0% Fv). Large Cap is demonstrating the highest expectations at 106.3% Fv followed by Mid Cap at 99.1% Fv. There is less enthusiasm in Small Cap stocks where market prices are lower than valuations by 10 percentage points at 90.0% Fv. See the full report with complete U.S. market coverage at: Client Service > World Markets > Americas > USA Stock Fair Value Report
Asset Allocation – USA View – 2020
Revised asset allocation management objectives can improve outcomes by revising the objectives of the portfolio to match the client view. Rather than a 2-dimensional income versus growth view, we believe the difference should be defined by adding a third dimension, stability. See the full report with tables at: Client Service > Asset Allocation > Americas > USA Asset Allocation