Service Change: Stock Consideration Change Report Improved
Several subscribers have sent in suggestions regarding the Stock Considerations Change Report. We appreciate suggestions and today, two of the suggestions have been incorporated into the report.
ISM Diffusion Index – Is it a valuable indicator?
The ISM Diffusion Index may be an excellent determinant of current and / or future economic activity, but it is not a significant indicator when it comes to stock share price movements.
Investment Strategy Today
Japan consumer confidence dropped 0.2 points to 43.3, but remains above the longer term average. Applied Materials fair value dropped $3/share due to a lower earnings rating and 17 stocks join the SELL consideration list.
When Does Consumer Confidence Outstrip the Market’s Ability to Deliver Return?
Does consumer confidence pull the stock market to higher levels or does the market make consumers more confident?
Probably a bit of both, but at what point do consumers/investors become over-exuberant.
Investment Strategy Today – Americas
The Total Market, LargeCap, DOW and SmallCap have moved into OverValued levels. Expectations are clearly higher than the companies’ ability to deliver at current levels. Revenues, earnings and dividends will need to accelerate before investor’s begin to realize expectations are higher than current reality. This does not mean an economic slowdown is coming nor that there is a large market correction on the horizon. It does mean expectations need to be realigned to match current financial conditions. Market returns may begin to slow or adjust to current financial conditions.