The Weekly Update 8/23/2024
“Better Than Expected!”
For the last several years you have read and heard me suggesting you will continue to read and hear that term more and more as we move forward, “Better that Expected!”
You pick any topic in the news today and when you read it out loud just add “better than expected” after it. For Example:
- Inflation… better than expected
- Jobs… better than expected
- Consumer spending… better than expected
- Gross Domestic Product (GDP)… better than expected
as detailed in the 8/16/2024 Weekly Update (Read it Here).
And, here is the bell ringer as it drives the future valuations of Corporate America, and that is profits!
In the July edition of The Seven Signs of a Changing Economy™ (Read it Here) I detailed on page 9 in Sign #6, “S&P 500 earnings per share growth”, the S&P 500 earnings and estimated earnings per share as follows.
Yardeni Research updated estimates are:
- 2020 $138
- 2021 $208
- 2022 $219
- 2023 $239
- 2024 Estimate $261.37
- 2025 Estimate $290.99
- 2026 Estimate $349.44
- 2027 Estimate $”4” handle
Note the highlight for 2024 of $261.37! Per the chart below that $261.37 has now increased to $264.00 as of August 16th, 2024.
Let’s all say it out load together….
“Better Than Expected”!
Yes, the world has always been a scary place. Get over that and focus on key facts like this one!
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 just waking up from the post Covid hangover. The outlook is that this could be a 10 ticket ride up the net worth curve.
Don’t fret, panic or worry if the “normal” back and fill comes knocking. It will not be as scary as the business news will tell you. Instead, I think the knocking will be an opportunity and here at TWSG, we will pounce on that, for now just pray that it comes!
At TWSG, we are well allocated for this and have our well thought out Investment Selection Matrix™, investment menu working in our collective TWSG family’s asset allocations.
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.