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Weekly Update

The Stock Market-Economy Connection


Published March 12, 2021

Below is the most recent analysis from Schwab’s Liz Ann Sonders. While some have struggled with the seeming disconnect between the stock market and economy over the past year, Ms. Sonders outlines how the market and economy have been much more in sync than we might realize. (more…)

Weekly Update

The Nasdaq Rolls Over


Published March 5, 2021

The market’s preferred narrative has changed over the past month leading to a selloff in the tech & consumer-heavy Nasdaq. When the current market rally started way back in April 2020, the argument was that the stable earnings growth and global presence of the mega-cap tech and consumer stocks like Amazon, Facebook, Nike, et al. would be the best place for stock investors to park their money. These brands are substantially online or ‘digital’ in their business operations, and less likely to be impacted by the new stay-at-home lifestyle. (more…)

Uncategorized, Weekly Update

Stock market seeks other drivers


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Published July 17, 2020

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A few miscellaneous notes this week that describe the current market outlook, foggy though it be.  Starting at the highest level with the wide range of earnings projections for the S&P 500.  Currently, the S&P 500 index trades around 3200.  If we look at the chart below, we see a 2021 earnings per share for the S&P 500 range of $135-170.  At $135, the S&P 500 is trading at price-earnings ratio of 23, on the high end of “normal”.

(more…)

Uncategorized, Weekly Update

Market Reaches Technical Inflection Point


Published May 22, 2020

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The stock market has rallied hard off the March 23rd bottom, surprising almost everyone in the strength and lift of the move. This rally has brought the Nasdaq 100 (QQQ) back to positive on the year, a stunning development given the dire economic situation. That positive year-to-date print for the Nasdaq reflects the seeming fact that Covid-19 has served to accelerate trends which benefit these top companies of the digital economy – e.g. Amazon, Facebook, Google. That the Russell 2000 small-cap index remains down almost -20% year-to-date, while the equally-weighted version of the S&P 500 is down -16%, is perhaps a better stock market gauge of the overall economy’s troubles. (more…)

Uncategorized, Weekly Update

Happy Happy


Published October 13, 2017

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The stock market continued its happiness this week rising to further new highs. This bullishness is certainly rewarding to our subscribers as well as, frankly, anyone fortunate enough to have chosen to invest in the Nasdaq late last year. (more…)