Summary
While U.S. stocks have shown resilience, the maturing bull market and a flattening yield curve suggest caution is warranted.
In this environment, value-priced stocks with businesses that benefit during an economic pullback appear to be worthy of consideration.
Leading discounter Dollar Tree Inc. has become a popular alternative to mass-merchants and Finbox.io valuation models show almost 15% upside to recent trading levels.
Downside Focus
While assessing a stock's upside is imperative, some of the most respected investors begin with a shift in focus: the downside. Top value investor Seth Klarman has gone so far as to make it a central tenet to his investing philosophy:
Loss avoidance must be the cornerstone of your investment philosophy."
With stock market indices hitting or approaching new records daily, it can be easy to get fixated on returns even in the face of lofty valuations. That may be a recipe for disaster, however, in this aging bull market:
