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Are Valuations Too High?

The market plummeted early this year in response to the COVID-19 pandemic. First, there was Black Monday…. then Black Thursday….

In the midst of the 2020 crash, stock prices plummeted and were attractively priced in March.  As the market rallies valuations have tightened – but is the market overvalued today?

That is the question Morningstar posed in a recent article.  In late March, the report they stocks they cover were trading at a 30% discount, which has consistently narrowed down to currently only a 5% discount to their fair value estimate.

Initially, many sectors were greatly undervalued; however, in recent months healthcare, technology and others appear to be approaching fair market value.

They report energy, financial services, and industrials also appear undervalued.

You can find the full article here, in their repository of resources, Coronavirus Economic Impact on Industries and Markets: The Latest.

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Friday, 29 May 2020 11:05

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