corporate earnings

Weekly Update

The Fuel for Stocks


Published October 22, 2021

The stock market is driven by earnings + liquidity + sentiment. With the Federal Reserve providing money at near-zero interest rates, the liquidity piece of the formula has been overflowing. Sentiment, or how optimistic/pessimistic investors are regarding the economy and markets, has generally been favorable. Corporate earnings have been stellar, rebounding strongly from the Covid-induced weakness. (more…)

Weekly Update

And Again … the Stock Market Finds Buyers


Published September 3, 2021

The S&P 500 has spent ten straight months above its 50-day moving average, one of history’s longest stretches of calm. Ultra-low interest rates from an extremely cautious and accommodative Federal Reserve have supported risk-taking investors by keeping the cost of money near zero. Very strong corporate earnings have rewarded investors by expanding the ‘E’ in the P/E ratio, justifying the market’s run upward. (more…)

Uncategorized

High Valuations and Seasonal Trends Make September a Scary Month


Published August 27, 2021

We have written often in recent weeks about how extended the market seems to be. Some of this content has come from Schwab. Back in the late 1990s, Schwab notified clients more than once that the market’s valuation was excessive and to be careful. Similarly, they have been proactively warning this summer of higher-than-normal market valuations and a market ripe for some downside action. There are notable differences between now and the late 1990s. (more…)

Weekly Update

Uncertainty in the Market


Published May 14, 2021

 

The stock market continues to hold on through intermittent bouts of selling. Corporate earnings have been record-setting in their growth from year-ago levels, severely depressed though they were. Despite outrageously good earnings for the top growth stocks in the Nasdaq, investors continue to shift money to cyclical value sectors like energy, finance, materials. The lackluster response to the hotshot earnings has led to some heavy down days in the market recently. (more…)

Weekly Update

The Stock Market Has Expanded Participation and Become Expensive


Published December 4, 2020

Below are some slides from a recent presentation by Charles Schwab market analyst Liz Ann Sonders. They give a good overview of recent market action. The first slide shows how the top 5 stocks in the market drove returns through the first eight months of the year. Since August, the other 495 stocks in the S&P 500 have at least helped do the lifting. (more…)

Uncategorized, Weekly Update

Trade Tariffs Hold the Key for Stocks


Published January 25, 2019

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Stocks have rebounded sharply from the Christmas Eve nightmare though plenty of fog remains for investors. You will recall that the Nasdaq 100 (QQQ) fell 12% over seven trading sessions in mid-December as thin holiday trading combined with rampant fears conspired to drive stocks downward. That plunge culminated in a 2%+ fall on Christmas Eve. (more…)

Weekly Update

Will the Robots Sidestep the Next Bear Market?


Published April 21, 2017

TimingCube_cartoon042117The rise of robo-advisors over the past five years is not surprising given the nearly non-stop upward trajectory of stocks. Investors have been lulled into a state of complacency assuming the investment waters are always so calm and just riding the market indexes is a perfectly fine way to invest. The article below comes from an organization who, like us here at TimingCube, believes that robo-advisors and their buy-and-hold models are an accident waiting to happen. (more…)