The Weekly Update 08/14/2026™
Crash Not Likely
The earnings of Corporate America are what drive the share prices of some up or down. If my Kool-Aid stand earns one dollar and yours earns two dollars, it is likely your stand is 2x the value of mine.
Now with that in mind it could be reasonable to assume, based on Zack’s Investment Research Chart below, that Corporate America as measured by the S&P 500 is valued too low.
An earnings growth rate of over 40% is rare air! To have that level of growth on a +15% increase in revenue is productivity uproar excellence!
Now, in the next chart notice the S&P 500 added $100 Billion in net profits to their corporate pocketbooks in the last six weeks.
Oops! Make that +$140 billion since the June 2026 report!
The source of that productivity is from both technology and A.I. Incredible Forces, misunderstood by most, feared by the rest!
Not included is the Yardeni Research 2028 earnings estimate of $475-$500 per share for the S&P 500. For fun, let’s assume this EPS number is correct. If it is, and it is highly likely based on current earnings trends, the S&P 500 is trading at about 15x earnings just a year and a half out.
Close to 21x, the 20-year average P/E, suggesting 2028 could see the S&P 500 as much as 40% higher and maybe more than that if we were to trend above 21x.
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.
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.
Thank you for your trust and confidence. As always, I am interested in your thoughts, comments, and observations. Feel welcome to call, email or stop by the office and say Hi.
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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