The Weekly Update 7/25/2025™ 

And That Is All You Need To Know!

In chart #1 below, notice productivity per worker rests at an all-time high!

I feel like a broken record as I write and say in our monthly Seven Signs of a Changing Economy™ call over and over that the earnings of Corporate America are a key data point.

If revenue per worker is at an all-time high, earnings/profits follow. In the chart below, Yardeni Research is now estimating 2025 forward earnings per share for the S&P 500 at a touch over $300. In the graph below, observe the trend of the red line. That matters, and it is excellent!

But, the exceptionally great news is that investor sentiment, i.e., outlook for good, bad or neutral,  investment background remain at the lows.  Not even close to prior all time highs. The investor crowd has missed this run and will now need to get that $7 trillion in cash reinvested as best they can.  FOMO (Fear of Missing Out), is in play for the balance of 2025, I think.

As you observe the chart above, notice those light blue bars tend to explode to the upside as money rushes in.  Nope, not this time.  You can hardly see the bars as investors are so afraid they can’t spit!  This is key as it strongly implies, suggests, and all but screams… higher highs ahead.

Now 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 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.

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