The Weekly Update 12/19/2025™
NOISE
The earnings (profits) of Corporate America are the root cause of valuations trending up or down, over time. As I wrote in this month’s edition of The Seven Signs of a Changing Economy™ on page 3 (Read it Here), the market values and the economy do separate from time to time, even for a year or two at a time. But, just like now they tend to come back together. Both now rest near all-time high valuations.
Earnings are growing quarter after quarter and GDP rests above $30 trillion, the highest level ever. Yet, over the last 30 days Investor nerves seem to be rattled. Expect that to continue through all of 2026.
During these times remember this, if an investor misses the 10 best days of the year, the performance results are not great at all. And when missed overtime, i.e., timing the market, the poor performance compounds to the downside, not good!
The fix is a simple reality. To get the performance of the 10 best days of the year, investors must stay invested and absorb the ten worst days too! I started in this business when the DJIA was 777. With the DJIA now about 47,000 points above that I can assure you it works.
Volatility requires patience and time, but it does work over time. So, remember, nothing has changed in the last 30 days and if it has it is only for the stronger / better.
For example:
- Tech is upgrading expectations again.
- S&P earnings are rising again.
- Revenues remain strong.
- Demand remains durable.
This is exactly how 2025 began with a wall of worry that the data simply refused to confirm. In 2025, Fear Was The Price Of Admission. In 2026, It Will Be The Same.
When I see or hear the negative business news, I replace it with the reality of this mental picture of our economy.
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.