Wednesday, June 24, 2015

Performance Update: Value is working !

Value has been driving the equity market for a while now. The Undervalued are comprised of the top quartile of both the Valuation Return (VR) and the Estimate/Normalized Earnings (EST/MPEPS or E/M or 4,4). They are in a positive trend of +4.3% pa, relative to the S&P 500, while the Overvalued's (1,1) downtrend is 3.9% pa for a spread of 8.2%. The spread is even higher using the Universe as the standard. 




In May, the UV stocks were up 4.5% while the OV declined 1.1% for a spread of 5.6% in one month.

So far in June (to June 24th intra-day), there has been a reaction to last month's gains and the Overvalued are up 2.5% relative to the market.  The Undervalued are down fractionally.

For a list of the screens, email robertlcolby@gmail.com