SLY

Key Takeaways: ·     Though we fall short of prognosticating on the immediate moves of the stock market, we think the near-term risk-reward of the broader market is growing more and more negative. Why? o    Market volatility is back due to Fed speak and poor data and pricing action from Asia. Typically, market hiccups signal that a change in price direction is near (we’re no longer going straight up). o    The significant out-numbering of poor scores on our stock-selection methodology, the Valuentum Buying Index, relative to good scores suggests to us that a higher degree of caution may be in order. o    According to Factset, the forward price-to-earnings ratio on S&P 500 constituents registers a 14.4x reading (as of last Thursday), above … Read more