The U.S. equity market is one of the best performing market among developed countries so far this year. For example, the S&P 500 is up by 14.35% on price return basis and 15.37% on total return basis year-to-date. Financials have skyrocketed with the sector in the index up by over 20%. Healthcare and Consumer Discretionary sectors also have had a great with a return of 20% or closer to that. Telecoms and Utilities, usually considered as income plays for their slow and steady growth with high dividend payouts, are lagging the overall performance of the market.
According to a report by Peter Buchanan of CIBC World Markets, U.S. stocks are not yet overvalued at least based on one measure. He states that the the ratio of stock market capitalization to GDP is still lower relative to two earlier highs. This ratio shows the percentage of GDP that represents stock market value. It can be used to identify if a market is overvalued or undervalued. Any figure over 100% is considered as U.S. market being overvalued and a figure of around 50% is said to show that the market is undervalued.
Source: Seeking Alpha
Related Articles:
- 8 Stocks With Strong Dividend Growth Metrics
- 10 Dividend Stocks Balancing Yield And Growth
- Defense Stocks May Not Be Defensive Stocks
- 10 Dividend Stocks That Gave Me A 20%+ Annualized Return
- All Investments Carry Risk
________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
In an attempt to put a lid on inflation, the Federal Reserve has stated that it intends to raise its benchmark federal-funds rate by 0.25% a...
-
If you have contemplated selling shares of some of the companies you own this year, you likely aren't alone. Considering how volatile th...
-
Dividend growth stocks are among our favorite investment groups because you get so much bang for your buck. Not only do the companies pay di...
-
Readers may want to do a stock valuation on the stocks in their favorite sectors and wait patiently until they become cheap. Patience is a v...
-
Dividend utility stocks might seem bad for your portfolio during high inflation and rising interest rates. However, the sector has done well...
-
Companies that have either been through past downturns or have the pricing power to offset the costs of inflation provide a crucial element ...
-
Dividend reinvestment plans, or DRIPs, can be effective ways to accumulate shares of high-quality companies for those with limited capital t...
-
We picked up two investments that carry excellent yields combined with some healthy upside in the share price. We also dropped one of our po...
-
If you're wishing you had a little more exposure to income investments right now and a little less exposure to growth, you're not al...
-
Do you have the stomach for contrarian investing - betting against the crowd? Sometimes that's necessary in order to find value. Why buy...
Stocks in developed markets are still overall very good buys. All you have to do is look at large cap stocks in Europe too, some incredible deals on offer here.