Valens Market Phase Cycle Monitor & Corporate Credit Macro View for May 2019
May 23, 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
