Market Analysis Report

ProThinker helps investors to make data-driven decisions on whether or not to invest in a particular market:

Our methodology brings the best of top-down and bottom-up together. 

Top-down: Research has shown that much of a portfolio’s return is determined by high level decisions such as how much allocation is made to equities vs. safer assets, country allocation and sector allocation. Our research is tailored to help investors make these important high-level decisions.

Bottom-up: While market research is primarily focused on top-down decisions, the inputs to the analysis are acquired from bottom up. Instead of relying on broad macro economic indicators to arrive at our conclusions, we use bottom-up estimates of analysts (for earnings, revenue, cash flow, dividends, etc.). 

 

Is a particular market overvalued? Buying into an overvalued market may have adverse effects even if the stock you pick is not overvalued. In a market sell-down, panic may cause investors to sell even stocks that are not overvalued. We use bottom-up data to help you determine whether a market is overvalued and where it is likely to go. Retail investors who are buying country ETFs may also be interested if the stocks in a country index are over or undervalued.

We provide market analysis for about 70 markets in the world, which together account for 99% of the world’s market capitalization. We provide a valuation of the market based on five valuation indicators (Price to Earnings, Price to Sales, Price to Cash Flow, Price to Book and Dividend Yield) and aggregate estimates of its fundamentals (i.e. earnings, sales, book value, cash flow and dividends). This is to allow fund managers to have an indication of the direction of the market.

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Is a particular market likely to outperform the world? Useful for managers with multi-country mandates that need to quickly zoom in on the ones that have the most promising stocks.  Useful for retail investors who are deciding which country or region ETF to buy. For this analysis, we use aggregated bottom-up data to compare one market with another.

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