One of my most important analytical tools is my quantitative stock selection model, which I call ERM and will be the basis for the upcoming release of FSI’s new single stock Dunks product.

My team and I update my model every week and are always looking for new opportunities for clients. Importantly, we do a deep dive into the names in the S&P 1500 Super Composite and I wanted to share my main conclusions in this week’s comment.

Broad Summary Comments:

The first key takeaway is the same one that we have been discussing for the last 6-9+ months — the earnings revisions backdrop for the S&P 1500 names remains robust and supportive of additional gains in the U.S. equity markets, which has been in place since the end of March 2020.

Hence, I am retaining my longstanding constructive medium-term view for equities, which was first communicated on 3/20/20. There remains a plethora of bears that that are still focused on overvaluation, the size of the move off the March low, the ongoing COVID cases, and now fears of rising inflation and interest rates. These are all fair points to consider. Yet, my focus continues to be on the powerful bullish combination of broad-based positive earnings revisions as measured by my proprietary ASM indicator, still historically lo...

Unlock this article with a FREE 30-Day Trial!

An FSI Pro, or FSI Macro subscription is required in order to access this content.

*Free trial available only on a monthly plan

Disclosures (show)

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 2/2

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 2 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In

Want to receive Regular Market Updates to your Inbox?

I am your default error :)