in 2020, %
|Dow Jones Industrials||29,910||29,001||-3||+6.4|
|Dow Jones Transportations||12,561||11,133||-11||+9.8|
|Dow Jones Utilities||873||489||-44||+1.2|
|S&P 500 Index||3,638||2,753||-24||+6.1|
|S&P 400 Index||2,206||1,677||-24||+5.2|
|S&P 600 Index||1,060||993||-6||+7.4|
|S&P 500 Financials||472||810||+72||-4.1|
|S&P 500 Health Care||1,273||940||-26||+4.5|
|S&P 500 Energy||290||278||-4||+1.6|
|S&P 500 Information Technology||2,154||1,182||-45||+5.3|
|S&P 500 Communication Services||217||143||-34||+6.5|
|S&P 500 Consumer Discretionary||1,280||1,168||-9||-2.8|
|S&P 500 Consumer Staples||687||414||-40||-5.2|
|S&P 500 Industrials||749||452||-40||+6.2|
|S&P 500 Materials||450||234||-48||+38.9|
|S&P 500 Real Estate||228||69||-70||+9.1|
|S&P 500 Utilities||322||165||-49||+1.1|
* "Buy-Sell" is the difference in the average actual performance in 2020 of stocks that were rated as buy and those rated as sell at the beginning of the year.
We calculate intrinsic value of a stock index by combining intrinsic values of its constituent stocks using the index calculation algorithms. The resulting index valuation, therefore, reflects past reported financial performance of its companies. Inevitably, there is a lag between the current situation and what is reported in financial statements.
What is much more important, though, is the companies future performance, which we forecast solely on the basis of their past financial performance. Read more on this in the section “A word of advice and caution” on this page.
In our opinion, relative valuation (i.e. in relation to each other) of individual indices presented here might be more useful than their absolute valuation. Be mindful of the reporting lag mentioned above, too!
2020-10-12 Author: Value Investor
What is behind this booming market? Why is it at record highs despite a severe recession? The answer, apparently, is very simple - it is the abundance of liquidity. The Fed, supported by both political parties, is flooding the economy with money. But how long will this bonanza last? [read all]
2020-05-07 Author: Value Investor
Berkshire Hathaway’s annual shareholder meeting is always a remarkable event, especially for value investors. It was not an exception in this regard this year, too, though it was quite remarkable in other respects, one of them being what Warren Buffett did not say. [read all]
2020-05-04 Author: Value Investor
We all know that the market price of anything is determined for forces of supply and demand. It is the price at which the supply is equal to demand. But what is behind these supply and demand forces? [read all]
2020-04-22 Author: Value Investor
There is a lot of hype about US companies spending obscene amounts of money on purchases of their own shares. But is it really that good for shareholders as we are led to believe? [read all]
2020-04-21 Author: Value Investor
One of the consequences of the crises will be an increase in risk aversion among ordinary investors. This would lead to a massive reallocation of capital from stocks first into savings accounts and then into another safe forms of investments. [read all]
2020-04-20 Author: Value Investor
A reflection on the past trading day, oil, Amazon, misery stocks, globalization, seigniorage, and what sign to monitor longer-term for worse things to come (hint: US dollar). [read all]
Investing in the stock market is inherently risky. An investor can lose all of their investment if the value of the stock (or portfolio of stocks) goes to zero. On the other hand, an upside could be very large (theoretically - unlimited). Taking the risk could prove to be disastrous or spectacularly successful, or anything in between.
So, how can you improve your chances of success? There are a number of recommendations to that effect:
Investor’s Craft offers you tools for selecting stocks. These tools use sophisticated valuation algorithms that interpret historical financial statements of publicly traded companies. It is a purely “mechanical” process with no human intervention in it.
There is a big disadvantage to it: even the best computer is not as smart as an average financial analyst. On the other hand, there is a huge advantage to this process: it is objective. All stocks are evaluated by the same algorithm on exactly the same bases. This makes possible direct comparisons among many different companies.
Please keep in mind, though, that stock valuation results generated by valuation algorithms presented on this site are just rough estimates based on the company past financial statements. What is of the paramount importance is the company future performance. Nobody knows what it will be. We could only make educational guesses about it.
So, take with a great deal of healthy skepticism recommendations assigned to individual stocks on this site (“sell”, “hold”, “buy”). They are the result of purely “mechanical “ algorithmic valuation intended for a rough classification of the valuation results. They are not actual recommendations to buy or sell specific stocks. In fact, we do not offer stock-specific or market recommendations. We just offer tools for stock analysis. In our opinion, these tools are best used for preliminary stock screening, as they offer a very fast way to narrow down the number of stocks that might be of interest to an investor from several thousand to several dozen.