May 23, 2019

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


  • The recent pull-back in the market provides buying
    opportunities. While headlines may be causing investor concern, fundamentals remain healthy
  • Profits and profitability continue to rise to all-time highs across US corporations (UAFRS-adjusted, accurate calculations)
  • US firms likely to use profits to increase capital investments in 2019
  • Business credit is flashing early warning signals for 2020 or 2021 – and all clear signs for 2019
  • The combination of profitability and growth, with low-to-no credit risk, suggests continued US equity upside in 2019
  • Investor sentiment has moderated recently, after reaching very high levels during the rally in the first 4 months of the year. A more neutral investor sentiment environment
    reduces downside risk for the market
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