From the desks of Stanley Katz & Lauren Madera
STAY SAFE & HEALTHY!
All three of the major US stock indices posted gains for the week (i.e., DJIA: +2.90%, S&P 500: +3.25%, Nasdaq: +3.08%) with the S&P 500 having advanced four weeks in a row! Even the year-to-date returns, though still off, have recovered about 20-50% from the June lows (i.e., DJIA: -7.09%, S&P 500: -10.20%, Nasdaq: -16.60%). It’s certainly encouraging, but many market pundits seem very cautious. With probable interest rate hikes, sticky inflation, and low unemployment in our future, the US stock market may see continued volatility both to the upside as well as the down. Click the Schwab Market Perspectives “Mixed Signals” link below for more thoughts in this regard.
In past Weekly Highlights & Commentary, we have written about price-to-earnings (PE) ratios. As stock market prices have gone down this year and earnings have remained steady, we have seen the US stock market PE ratio compress to a reasonable level of 14X-16X. Going forward, the question remains how will company earnings perform? If the overall economy continues to slow, naturally earnings will be impacted. Take a look at the T. Rowe Price article below on this topic.
Below are links to a number of third-party research reports that we have read and analyzed over the past week. We hope you will find the information interesting, useful, and worthwhile.
Schwab:
T. Rowe Price:
MFS:
Northern Trust:
J.P. Morgan Asset Management:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500
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