Green Book June 2006
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Featured Articles
Attractive Groups Based On Insider Scores
During the last few months, we have been looking at the Insider Selling and Buying among various broad sectors and last month decided to present those specific equity industry groups that currently have the best scores based on the insider patterns of selling and buying.
Health Care's Relative Value
It is well-known that valuations for U.S. large-caps have compressed dramatically since their late 1990s heydays, and among all large-caps the cheapest of the cheap may be the health care stocks.
Inflation Watch
Raised our 2006 CPI estimate (mid-May) to +4.5% from initial projection of +4.0% or less.
May's Market Action
“Sell in May, then go away” goes that old piece of Wall Street wisdom. Problem is, this year everybody seemed to sell in May, so going away doesn’t seem like such a good idea anymore.
More Life Left In Materials?
The Materials sector moved up to the top position in the latest Sector Power Rankings, based on the number of Attractive and Unattractive groups in each sector.
Mutual Fund Flow…..Demand Disappears As U.S. And Global Stock Markets Slide
On a YTD basis, flow into domestic focused stock funds significantly trails the record-breaking amount of flow going into international and global equity funds.
New Select Industries Group Positions - Undervalued & Unloved and Industrial Gases
Group deactivations allowed for purchase of two new equity groups: Undervalued & Unloved and Industrial Gases.
The VIX: Volatility Increasing But Still Far From A Buy Signal
During May, the 10 day weighted VIX rose from a level of 11.7 to a peak of 16.7, prompting some to wonder if this work was signaling a buy signal. In fact, the VIX is now at the highest level since mid 2004, but this is still far from a buy signal.
Undervalued & Unloved
Value investing, and this U&U quant screen discipline in particular, has proven to be a superior investment strategy over the long term. It is not superior to growth stocks nor the broad market every year, but it has lower downside risk in bad markets and solid strength in up markets.
Update On Japanese Stock Market...Has Our Bullish Outlook Changed?
Notwithstanding the market action in the most recent month, in the longer term we suspect that the Japanese stock market might be less vulnerable than other regions and countries of the world (including the U.S.).
View From The North Country
We may or may not be close to entering a new cyclical bear market, but as we view it, the risk has risen significantly.
Table of Contents
Stock Market
- View From The North Country
- May's Market Action
- Health Care's Relative Value
- More Life Left In Materials?
- Attractive Groups Based On Insider Scores
- Update On Japanese Stock Market...Has Our Bullish Outlook Changed?
- The VIX: Volatility Increasing But Still Far From A Buy Signal
- Mutual Fund Flow…..Demand Disappears As U.S. And Global Stock Markets Slide
Of Special Interest
Macro Monitor
Equity Strategies
Inflation Watch
Attractive Groups Based On Insider Scores
During the last few months, we have been looking at the Insider Selling and Buying among various broad sectors and last month decided to present those specific equity industry groups that currently have the best scores based on the insider patterns of selling and buying.
Health Care's Relative Value
It is well-known that valuations for U.S. large-caps have compressed dramatically since their late 1990s heydays, and among all large-caps the cheapest of the cheap may be the health care stocks.
Inflation Watch
Raised our 2006 CPI estimate (mid-May) to +4.5% from initial projection of +4.0% or less.
May's Market Action
“Sell in May, then go away” goes that old piece of Wall Street wisdom. Problem is, this year everybody seemed to sell in May, so going away doesn’t seem like such a good idea anymore.
More Life Left In Materials?
The Materials sector moved up to the top position in the latest Sector Power Rankings, based on the number of Attractive and Unattractive groups in each sector.
Mutual Fund Flow…..Demand Disappears As U.S. And Global Stock Markets Slide
On a YTD basis, flow into domestic focused stock funds significantly trails the record-breaking amount of flow going into international and global equity funds.
New Select Industries Group Positions - Undervalued & Unloved and Industrial Gases
Group deactivations allowed for purchase of two new equity groups: Undervalued & Unloved and Industrial Gases.
The VIX: Volatility Increasing But Still Far From A Buy Signal
During May, the 10 day weighted VIX rose from a level of 11.7 to a peak of 16.7, prompting some to wonder if this work was signaling a buy signal. In fact, the VIX is now at the highest level since mid 2004, but this is still far from a buy signal.
Undervalued & Unloved
Value investing, and this U&U quant screen discipline in particular, has proven to be a superior investment strategy over the long term. It is not superior to growth stocks nor the broad market every year, but it has lower downside risk in bad markets and solid strength in up markets.
Update On Japanese Stock Market...Has Our Bullish Outlook Changed?
Notwithstanding the market action in the most recent month, in the longer term we suspect that the Japanese stock market might be less vulnerable than other regions and countries of the world (including the U.S.).
View From The North Country
We may or may not be close to entering a new cyclical bear market, but as we view it, the risk has risen significantly.
Stock Market
- View From The North Country
- May's Market Action
- Health Care's Relative Value
- More Life Left In Materials?
- Attractive Groups Based On Insider Scores
- Update On Japanese Stock Market...Has Our Bullish Outlook Changed?
- The VIX: Volatility Increasing But Still Far From A Buy Signal
- Mutual Fund Flow…..Demand Disappears As U.S. And Global Stock Markets Slide