The Weekly Update 11/29/2024
Too High to Buy?!
As we started into the 3Q2024 earnings season for Corporate America, economists were predicting +2-3% growth. Not sure how you keep your job when you are off by 400%, but I digress!
Per LSEG’s proprietary research created by Tajindor Dhillon, CFA on 11/15/2024, the earnings for Corporate America, as measured by the S&P 500, are up +8.8% while small companies were up 34.3%.... for the quarter!
Large tech companies up +17.4% and small tech companies up 39.40%! The business news is apparently so P.O.’d about being wrong for so long that I have not seen any business news source reporting this.
Check it out!
Remember, the only thing that makes your Kool-Aid Stand more valuable than mine is if you earn more money than mine and/or are growing earnings higher than mine. These two key points will likely push values higher.
In the Weekly Update of 12/30/2022 (Read it Here), 1/6/2023 (Read it Here) and 1/13/2023 (Read it Here) I screamed that the bottom was right there, and it was!
So, too high now to buy now? Well, no one knows the future, yet I believe $1 that the currently valued Dow Jones Industrial Average (DJIA) at 44,711, ticks 50,000 before it ticks 40,000, and once we cross DJIA 60,000 it will feel even worse to invest in your bigger financial future.
Speed bumps, roadblocks, and potholes ahead? Yes, that is likely.
Again, 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 is still waking up from the post Covid hangover. This could be a 10 ticket ride up the net worth curve.
Any air pockets that might happen will keep TWSG team continuing to add strategic investments to our client family’s asset allocations.
I am interested in your thoughts, comments, and observations. Feel welcome to call, email, or stop by the office and say Hi.
Happy Thanksgiving to you and your family from all of us at TWSG!
Respectfully,
James O. Lunney, CFP®
CERTIFIED FINANCIAL PLANNER™ Professional
Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
Investing involves risk including loss of principal. No strategy assures success or protects against loss.
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 S&P 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.
The Dow Jones Industrial Average is comprised of 30 stocks that are major factors in their industries and widely held by individuals and institutional investors.
The prices of small and mid-cap stocks are generally more volatile than large cap stocks.