The large valuation discount on foreign shares has narrowed a bit, reflecting better relative action in foreign shares over the past 14 months and relatively weaker foreign fundamentals.
Our Stock Quality Rankings currently show that stocks with Low Quality rankings outperformed those with High Quality rankings.
Our Stock Quality Ranking work currently shows stocks with low quality rankings outperforming those with high quality rankings.
Return On Equity (ROE) has been performing well as a quality factor on a global basis over the last six to twelve months.
We still have been unable to get a satisfactory explanation from Standard & Poor’s of why and how they revised their Book Value calculation. The revisions were huge and had a significant impact on our valuation metrics.
We remain confused by the huge revisions without a valid explanation.
While operating earnings may even now be on the road to recovery, an accounting rule change could produce a virtual earnings wipeout in fourth quarter reported earnings.