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
Overvaluation pressures continue to drop as valuations moved closer to 100% fair value (Fv). LargeCap is only 10 points away from this level. MidCap stands at 118.4% Fv with SmallCap at 115.0% Fv. All three capitalization categories moved lower. LargeCap dropped the least of the three at 1.5 points while MidCap and SmallCap both dropped more than 2 points.
If the market allows stocks to ‘catch-up” to future expectations, the current market expansion could continue for many years. However, if corporations start to disappoint and expectations start to adjust downward, market growth rates could slow or possibly turn negative. Much of this depends upon the degree of disappointment. The degree of disappointment could be triggered by inflation.