The Weekly Update 07/10/2026™
FEAR IS DEEP!
Per this chart from the American Association of Individual Investors (AAII), dated June 30, 2026, 68.60% of investors polled are not bullish, (Positive) on the investment outlook for the next six months.
You know what else happened on the same day the above chart was released? The Dow Jones Industrial Average (DJIA), The Dow Transport Index and the equal-weight S&P 500 Index all hit all-time highs. Imagine that! All-time highs and the herd is negative. Stunning to me.
Bubble Blather!
I was in this advisors chair with a front row seat to the tech bubble in 2000. Frankly, it was pretty obvious there was a bubble. The tech companies had little to no revenue or profits. They were loaded with junk bond debt (to be paid back with what?) and companies were valued based on “eye-balls”! Of course it was a bubble.
The chart below very clearly measures what a bubble isn’t!
As you observe this chart below, let your eyes drift along the red line, $342.17 per share in earnings (NOT revenue… earnings, i.e., profits) for Corporate America estimated for the S&P 500, for full year 2026.
For 2027? Well that is estimated to be $402.96 and growing fast! In just 18 months that $402.96 is estimated to hit $470.00 per share.
Right now, the valuations are based on hard cold cash profits, not eyeballs, and that is why it is most likely not even close to a bubble.
I would argue all day long with the bubble heads that you cannot have a bubble when earnings are growing and expected to keep growing, into the future at a double-digit rate.
I did not say market valuations go straight up, and I did not say without volatility, yet the data flow suggests the good old USA has a very bright outlook.
As always, your WSG team remains focused, thoughtful, and on purpose as we continue the ongoing process of allocating The WSG client family assets entrusted to our oversight
Thank you for your trust and confidence. As always, I am interested in your thoughts, comments, and questions.
Respectfully,
James O. Lunney, CFP®
CERTIFIED FINANCIAL PLANNER™ Professional
*The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. Investing involves risk. Loss, including loss of principal, may occur. No strategy assures success or protects against loss. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
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