Opening Statement from the December 2015 Intelligent Investor

Opening Statement from the December 2015 Intelligent Investor

Originally published on December 9, 2015 (pre-market)

A growing consensus of lower oil prices for a longer period has sparked a new wave of panic selling in energy stocks. Unfortunately, macroeconomic fundamentals have not altered the bearish sentiment for commodities, which could eventually spill over into the overall stock market.

The October stock market rally, the biggest in four years, was the opposing response to the exaggerated stock market selloff in late August. The only problem is that earnings and economic data indicate that stock prices remain overvalued from a longer-term perspective. 

We continue to believe Q3 and Q4 earnings will decline year-over-year. We also believe that the Dow Jones is likely to remain in a trading range for the next few months until one or more events surfaces to alter valuations and sentiment.

Already we see...