- This article updates my July 2021 article, "Time to De-Risk."
- While the Wilshire 5000 declined 18.2% YTD, S&P 500 Q1 numbers were strong: 79% companies beat expectations, revenue up 9%, earnings up 13%.
- Trends are favorable for Total market Cap/GDP, Shiller CAPE, P/E, P/B, P/S, and Dividend Yields. But only P/E not elevated compared to history.
- Inflation worries and recession fears suggest elevated market valuation metrics have room to fall further.
- Market sell-off has indiscriminately punished some of the world's highest quality companies; next step is to identify the most attractive of these firms for long-term accumulation.
For further details see:
Time To De-Risk 2.0: Not Time To Be Bold, Correction Creates Opportunities