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Welcome to Affinity Financial Advisory

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We are an independent Registered Investment Advisor (RIA)
& a fiduciary for our clients

Why Affinity

We strive to provide you with comprehensive & affordable
investment management & financial advisory services 

Why Affinity

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  3. Market & Economy

Market & Economy

How does Affinity gain investment perspective? 

We do so in a few, relatively simple ways.  While simple, this data provides a fairly comprehensive and sophisticated view.  While these tools help provide us with perspective, there are other more detailed analysis that we perform as well. 
 

Technical Analysis 

  • the use of price-based statistics (indicators) to gauge the likely direction of on investment, etc. 
  • this is Affinity’s main tool in making investment decisions 
  • moving averages, such as the 200-day, are a simple example of technical indicators 
  • for a more detailed description of this, see ITEM 8 of our ADV II
     

Morningstar’s Market Fair Value - Graph

  • is the stock market under (below 1) or overvalued (above 1)? 
  • provides guidance in when to be cautious (well above 1) and optimistic (well below 1) 
  • at extremes – it is helpful in identifying potential for a turn in the market 
  • provides historical context – the graph’s data goes back years 
     

Yardeni Research – YRI S&P 500 Earnings Forecast (Figure 6)

  • provides annual S&P 500 (large US stocks) target levels for the current & two following years 
  • helpful in developing expectations for short to intermediate-term return potential 
  • classic valuation model based on projected earnings & the level of interest rates 
     

American Institute for Economic Research – (AIER) Leading Economic Indicators Index

  • measures the likelihood of economic expansion or contraction 
  • economic expansion 
    • more likely when the level is above 50 
    • stock markets tend to do well when this is the case 
  • economic contraction 
    • more likely when the level is below 50 
    • stocks markets tend to do badly when this is the case​

Perspective

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Allen Park, MI
48101 United States

  •  Tel: 313-294-9290
  •  nino@affinityfa.com

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