Broker Check

The Weekly Update 6/7/2024

| June 07, 2024

The Weekly Update 6/07/2024

  

In the first quarter of 2024 the earnings of Corporate America once again were fantastic!  Why is this never, as in ever, in/on our news sources?!  Yes, a rhetorical question!

Of the 481 S&P 500 companies to report, earnings are up of 8% for the same period last year on a revenue increase of +4.4%.   A whopping 78.2% beat their own earnings projections!

Per the chart below from Zacks Investment Research Inc., the full year 2024 earnings for Corporate America are projected to be up +9%!  Just to remind us all how lame the “talking heads” are inside our news service, they were predicting +1.40% in January of 2024.

                                            

Note to self, as 2025 and 2026 news projections roll in, observe that Zack’s has each year growing EPS at +13.60% and +11.30% respectively.

That recession the media has been telling us is right around the corner for the last 2 ½ years has yet to arrive and the data strongly suggests it won’t.  I will stick with the description I created about two years ago, “The Recession that Didn’t Recess”.

I did not say valuations will go straight up, and I did not say without volatility, yet the positive economic backdrop, inflation collapsing in on itself, and eye-popping earnings for Corporate America are source based, quantifiable and solid!

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  

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.

All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested in directly. 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. Stock investing includes risks, including fluctuating prices and loss of principal.

Asset allocation does not ensure a profit or protect against a loss.  Value investments can perform differently from the market as a whole.  They can remain undervalued by the market for long periods of time.