Valens Market Phase Cycle Monitor & Corporate Credit Macro View for March 2019

March 15, 2019

Market Phase Cycle™ Investing Strategy

Summary Headlines – Inside This Month

  • We are in the seventh inning of this bull market, and there is still a lot of “baseball” left to play
  • Profits and profitability continue to rise to alltime highs across US corporations (UAFRSadjusted, accurate calculations)
  • US firms likely to use profits to increase capital investments in 2019
  • Business credit, the “canary in the coal mine” for stock market disasters is flashing early warning signs for 2020 or 2021 – however, all clear for 2019
  • The combination of profitability and growth, with low-to-no credit risk, suggests strong US equity upside in 2019
  • Specific stock ideas that play into the current market dynamics are: First Solar (FSLR), eBay (EBAY), Winnebago (WGO)