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By Morningstar's calculation, high quality (wide moat) stocks are sitting exactly at fair value as of 10/17 while low quality (no moat) stocks are about 8% overvalued. Just as I look at the three-year valuation chart, 8-12% overvalued is about as high as it gets before a correction sets in.
Likewise, their universe of low-risk firms is at 98% of fair value while high risk firms at at 105%. Over the past three years, the peak has come at 107% overvalued.
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Likewise, their universe of low-risk firms is at 98% of fair value while high risk firms at at 105%. Over the past three years, the peak has come at 107% overvalued.
For what interest it holds,
David