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M* Strong Markets Lifts More Stocks Above Fair Value

Old_Skeet
edited January 2020 in Off-Topic
With the Morningstar US Market Index climbing nearly 10% in the fourth quarter of 2019, the median stock in our North American coverage now trades at a 3% premium to our fair value estimate compared with a 2% discount near the end of the third quarter. Of the roughly 800 North American stocks we cover, 32% have an overvalued rating of 1 or 2 stars compared with only 21% with an undervalued rating of 4 or 5 stars. Only three of the 11 sectors we cover have a median stock with a price/fair value ratio below 1: energy, consumer cyclical, and communication services.

https://www.morningstar.com/articles/961169/strong-market-lifts-more-stocks-above-fair-values

Comments

  • MarkMark
    You know I get all this and I understand people's hesitancy. However, I seem to recall a similar message at the start of 2019 and I wonder how that turned out for those who held back, sat on their cash or even sold out. While the US market may seem like it's highly valued or even be highly valued I see no evidence of a 'euphoric' state if you will. Invest as you must, we all have our own plan.
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