The Weekly Update 08/28/2026™
Created by Jim Lunney, CFP®
Finally, a Headline Telling the Truth!
As long-time readers know, I am a huge fan of Yardeni Research. Dr. Ed Yardeni is smart, independent and his firm's research has been historically accurate.
This is a headline on a recent post from Dr. Ed at yardeniresearch.com.
The valuations of Corporate America, as measured by the S&P 500, are now less expensive than six months ago. The S&P 500 earnings are up +24.90% year-to-date (YTD), after the first two quarters. The S&P 500 index is up +12.10%.
The price-to-earnings (P/E ratio) is a measure of risk and is based on the earnings versus the price detailed above, the P/E has dropped about 9.90%.
In a chart form here is what that looks like.
Focus for a moment on the chart above. Don't glaze over it. What you are looking at on the top line is forward S&P 500 earnings (profits/money in hand) growing at the +24.90% annual rate. The lower line is the price-to-earnings ratio at -9.90%, i.e. the valuations today are above where they rested at the start of the year, but importantly, those same prices are cheaper today based on the huge growth in earnings year-to-date.
In this next graph it is very easy to see the forward earnings (EPS) for Corporate America are estimated to be up +35.90% on an increase in forward revenue (RPS) of +13.10%.
Just FYI, that huge and profitable jump in profits over revenue is driven by the productivity created by technology and artificial intelligence (A.I.) advancing into the systems and processes of Corporate America.
As noted in the piece I wrote for The Weekly Update on 8/21/2026 (Read it Here), it is difficult to have a market crash when Corporate America is making money hand-over-fist!
You have a choice to have “Faith In” or “Fear Of” … The Unknown. You know my choice!
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 Wealth Strategies Group
7761 Shaffer Parkway, Suite 100
Littleton, CO 80127
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*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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