From the desks of Stanley Katz & Lauren Madera
STAY SAFE & HAVE FUN!
All three major US stock market indices produced nice gains for the week (i.e., DJIA: +2.30%, S&P 500: +2.43%, Nasdaq: +3.32%). Which factors are driving this market upward? Inflation seems to be slowing. The employment rate remains strong enabling wages to escalate. However, labor is restless, producing as many strikes these days as we’re getting with lightning! Price-to-earnings ratios continue to stretch as the S&P 500 currently trades at 19.96X trailing twelve-months earnings. For more insight, click the link to “Schwab Market Perspective: Half Full?”
The second half of the question is whether the US stock market can continue its ascent. 2Q2023 earnings announcements started last week and, for the most part, have beaten estimates. As we progress through this earnings season it may tell us what the near future holds for the stock market in aggregate. Have we reached peak returns for the year? Or will we flatten out or recede? Capital Group’s analysis in their piece below makes some interesting points on the 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.
J.P. Morgan Asset Management:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
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