Market Outlook - First Quarter 2020
Posted
on Friday, February 21, 2020
in
Financial Education
Market Outlook - First Quarter 2020
With the Morningstar U.S. Market Index climbing nearly 10% in the fourth quarter of 2019, the median stock in our North American coverage now trades at a 3% premium to our fair value estimate compared to a 2% discount near the end of the third quarter.
Energy remains the cheapest sector in our coverage. The long-term economics of supply and demand point to levels that make many U.S. energy stocks attractive at today’s prices. Consumer cyclical stocks also look relatively attractive, especially travel and leisure. Technology stocks were on fire in 2019, and we don’t see much value in the sector today.