Why US investors should look at the laggards in their portfolios

US stocks had a turbulent last quarter in 2018 and have been somewhat volatile since the start of this year.

That said, they have recently continued their sporadic move higher after a short-lived dip associated with the inversion of the yield curve, and have recovered much of their Q4 losses. However, there is caution in the air; rising equity prices are no bad thing but there is increasing concern that gains have exceeded stock fundamentals, at least in the near term. Investor sentiment is back in extreme optimism territory, while valuations are once again elevated. This has been driven by both stocks moving higher and earnings estimates moving lower. US recession checklist: The signs to...