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April means spring. Let’s look into the U.S. real estate market this month. This is where there could be a property “bubble” lurking. To start, Real Capital Analytics tells us U.S. commercial property transaction volume fell -11% in 2016. The level of activity was still elevated historically and marked 2016 as the 3rd strongest year on record. The apartment sector led transaction activity in 2016, both for total volume and growth. No property type saw more deal volume. That suggests this--Investors need to focus on apartments for a sign of a bubble.
Second, Is It Time to Buy U.S. Stocks?
Think about 2,300 to 2,400 as an S&P500 range this summer. Stocks are likely 20% overvalued. The April 2017 index trades at 17.6x forward earnings. The Feb 2016 index low traded at 15.2x. The S&P500 has a 10-yr average of 14.3x forward earnings. The S&P500 at 2,300 should provide support. That’s a 17 P/E.
Finally, Here’s the Latest Zacks Sector/Industry/Company Telescope
The April spring season is here. And in sector terms, the Consumer is back in the driver’s seat. Discretionary is back to a HOT sector. Staples got upgraded. The Info Tech space remains HOT too, as it gets back to an Attractive sector, with Semis leading again. The other HOT spots are in the Financials, with a rate hike in hand, and 2 or 3 more on the way this year. Despite the good news on U.S. and European manufacturing from the latest ISM print, Industrials stay a Market Weight. The downshifted sectors in April are clearly Energy and Materials vis-à-vis early in the year.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
Image: Bigstock
Time to Buy or Sell Stocks and Real Estate?
First, Let’s Talk Real Estate
April means spring. Let’s look into the U.S. real estate market this month. This is where there could be a property “bubble” lurking. To start, Real Capital Analytics tells us U.S. commercial property transaction volume fell -11% in 2016. The level of activity was still elevated historically and marked 2016 as the 3rd strongest year on record. The apartment sector led transaction activity in 2016, both for total volume and growth. No property type saw more deal volume. That suggests this--Investors need to focus on apartments for a sign of a bubble.
Second, Is It Time to Buy U.S. Stocks?
Think about 2,300 to 2,400 as an S&P500 range this summer. Stocks are likely 20% overvalued. The April 2017 index trades at 17.6x forward earnings. The Feb 2016 index low traded at 15.2x. The S&P500 has a 10-yr average of 14.3x forward earnings. The S&P500 at 2,300 should provide support. That’s a 17 P/E.
Finally, Here’s the Latest Zacks Sector/Industry/Company Telescope
The April spring season is here. And in sector terms, the Consumer is back in the driver’s seat. Discretionary is back to a HOT sector. Staples got upgraded. The Info Tech space remains HOT too, as it gets back to an Attractive sector, with Semis leading again. The other HOT spots are in the Financials, with a rate hike in hand, and 2 or 3 more on the way this year. Despite the good news on U.S. and European manufacturing from the latest ISM print, Industrials stay a Market Weight. The downshifted sectors in April are clearly Energy and Materials vis-à-vis early in the year.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
See today's Zacks "Strong Sells" absolutely free >>.