The markets are never fully democratic or egalitarian in their allocation of rewards and burdens. But the stock market is again in a phase where inequality issues among stocks, sectors and investment styles have become stark.
The tape has shown a strong preference for very big companies over smaller ones, organic-growth vehicles over economically cyclical plays and groups offering a reliable stream of cash flow and income over all others. Another way to view this: Certainly this is behind the strong outperformance of the real estate and utilities sectors, which both hit fresh highs last week. Every S&P utility stock is above its 50-day average, as are 88 percent of real-estate names and 78 percent of the consumer-staples sector.
This is not to suggest a dangerous level of concentration or overvaluation in the mega-cap tech group. The market in past decades has been far more top-heavy than it is now, with no immediate adverse consequences. And one could view the valuation gap is the market effectively rewarding the most resilient, financially formidable companies for their inherent advantages in a software-propelled economy undergoing constant disruption to traditional business models.
But boy to they look cheap, with the largest banks under 10-times earnings and the entire S&P financial sector around 11.4-times — nearly two multiple points below their five-year average, according to FactSet.
Orthodontist tells me you can fix a FANG by putting having braces installed
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Stock-market analyst who called 2018 rout says if earnings are weak, ‘I don’t think stocks are going to look through it’Morgan Stanley’s chief equity strategist Michael Wilson says after the Federal Reserve’s Wednesday decision underlined the central bank’s uber-dovish stance, corporate earnings are going to be paramount for stock-market investors. such a bold call.......he didn't call the monster V rally since Dec. 24.......he said it was 'still a rolling bear market'.....wrong yawn
Source: MarketWatch - 🏆 3. / 97 Read more »
Cousins Properties, Tier REIT to merge creating an office REIT with combined market cap of $5.9 billionCousins Properties Inc. and Tier REIT Inc. announced Monday a merger deal, creating a office real estate investment trust with a combined equity market capitalization of about $5.9 billion. The stocks are still inactive in premarket trade. Under terms of the 100% stock deal, Cousins will exchange 2.98 shares of newly issued shares for each Tier stock outstanding. Based on Friday's closing prices, that values Tier shares at $29.44 each, a 15.6% premium. The deal is expected to close in the third quarter of 2019, at which time Cousins shareholders will own 72% of the combined company and Tier stockholders will own 28%. The companies expect annual net savings of $18.5 million after closing. "The company will own an unmatched portfolio of trophy office properties in the premier submarkets of Atlanta, Austin, Charlotte, Dallas, Phoenix and Tampa," said Cousins Chief Executive Colin Connolly. Cousins's stock has rallied 18.9% over the past 12 months and Tier shares have soared 42.0%, while the SPDR Real Estate Select Sector ETF has climbed 19.1% and the S&P 500 has gained 8.2%.
Source: MarketWatch - 🏆 3. / 97 Read more »
Tesla analyst cuts Model 3 forecast, now sees bear market in stock aheadRBC Capital Markets says delivery issues and lackluster demand will plague Tesla earnings; analyst Spak cuts his stock forecast 14 percent. Model 3 has an ugly nose. Analyst cut Model 3 forecast once before and has no evidence to support this new decision to cut. Evidence suggests Model 3 sales in Feb were huge in Europe and China. Analysts missed Tesla deliveries forecast by wide margin in 2018 and are still working with flawed fcast model.
Source: CNBC - 🏆 12. / 72 Read more »
Here’s how the Mueller report could roil the stock marketThe president endorsed the public release of Special Counsel Robert Mueller’s report on possible ties between the Trump campaign and Russian election... Hint: it won't. No collusion. well noted marketwatch For 18 hrs since Mueller Report, realDonaldTrump has not tweeted from his FL Toilet. Does this mean the Impeachment is certain? Is he talking to the Walls of his Mansion, like the Dirty Dick Nixon? If he is still sane, he will be tweeting a dozen times so far! Hi DonaldJTrumpJr
Source: MarketWatch - 🏆 3. / 97 Read more »