Still No Margin of Safety in the Stock Market
Last week's market decline has not left stocks cheap on the whole, but there are still some individual values to be had.
Stocks have had a bit of a tumultuous week. Mixed earnings pointed to economic weakness overseas, Spain and the rest of Europe's sovereign debt woes remained in focus, and investors continued to fret over the fiscal cliff. The broad-based U.S. Market Index dropped 3% on the week, with a similar magnitude of decline across all parts of the Morningstar Style Box and across industry sectors.
But this modest sell-off has not left stocks particularly cheap, and given the huge amount of uncertainty that remains in the market, investors remain well-served by being selective in their stock investments.
Bearemy Glaser does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.