What a difference one quarter can make: After a dismal close in 2018, the Morningstar U.S. Market Index was up more than 14% during the first quarter this year. As a result, bargains are harder to find today than they were just three months ago.
"From a bottom-up perspective, global equities are now only slightly undervalued," notes Dan Rohr, Morningstar's director of equity research for North America, in his quarter-end wrap-up. "The median stock across our 1,500-plus coverage now trades 4% below our fair value estimate compared with a 14% discount toward the end of 2018. Not surprisingly, we also see fewer compelling investment opportunities, with the number of 5-star stocks down by half since year-end."
Susan Dziubinski does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.