Inflation Fading, Profits Rising!

It is a touch ironic that the same Corporate America that the financial news had falling off a cliff due to inflation continues to perform really well!

Huh! Nothing in the news about the “good news”!  As of Friday, August 4, 2023, 423 S&P 500 companies have reported their revenue and profit results.  79.4% are above their earnings per share estimate and 65.50% have beat the predicted revenue.  I guess that’s not newsworthy.  Except that it is the highest ever recorded on earth!

S&P 500 Earnings per Share (EPS) (Source: Yardini and Associates Research, 8/14/2023)

2019     $163

2020     $138 (Covid impacted)

2021     $208

2022     $219

2023     $232.41 Estimate

2024     $246.38 Estimate

As we roll into the fourth quarter of 2023 the focus will transition to 2024 earnings.  That’s just fine as the profits for Corporate America are also predicted to continue being the highest ever.

So, “yes”, we are continuing to add a few favorite investment positions that appear to offer growth going forward, but our WSG rules have not changed!

They are:

• To not make our client family poor
• Don’t fight the Fed
• Five-year money (Read it Here)
• No one knows the future

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.