The Weekly Update 1/09/2026™
Afraid of What!
If the title above seems familiar, it should, as it was the title I used for The Weekly Update on 11/14/2025! (Read it Here)
In the 11/14/2025 issue I was referring to the “knock the lights out” increase in our Gross Domestic Product (GDP) as it busted through the $30 trillion ceiling and continues growing at a +4.30% annualized rate!
In this week’s update I will use “Afraid of What” to refer to the annual earnings & revenue growth rate for Corporate America, as measured by the S&P 500.
I am sorry, but the look back to 2022 and forward to 2027 below is not scary!
What is scary to me is why 58% of investors surveyed by the American Association of Individual Investors (AAII) are negative (Bearish) on the investment outlook!
Check out the stats in the chart below.
In the chart below, we have now had three years of solid gains, which is based on the earnings, and earnings growth estimates, from the first chart above.
Don’t miss that part above that we have only experienced this type of back-to-back returns 4 other times since 1950!
As I write this update on Day #2 of trading for 2026, all major stock indices rest at, or near, their all-time highs!
Aahh, maybe that’s what those 58% of investors are afraid of, fear of high index numbers, while missing what makes those numbers go higher, i.e., the higher earnings in chart #1.
It is likely that 2026 experiences another positive return year.
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. Think “Five Year Money” (Read it Here).
I’m 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.
Copyright © 2025. The Wealth Strategies Group. All rights reserved.