From the desks of Stanley Katz & Lauren Madera
STAY SAFE & HAVE FUN!
The big news last week was that Fitch downgraded the US Treasury’s credit rating to AA+ from AAA. After all, we have been running continuous budget deficits since the Clinton administration in 2001! Several stock market analysts want to blame last week’s dip in the US stock indices (i.e., DJIA: -1.11%, S&P 500: -2.27%, Nasdaq: -2.85%) on the ratings downgrade, but there were also several disappointing company earnings reports–like Apple’s. Just the same, click BlackRock’s postmortem on the rating downgrade.
In the meantime, let’s do our own analysis of the US stock market and 2023 earnings through June 30. The US economy keeps plugging along and seems to be avoiding that once feared recession. Year-over-year earnings were mildly lower on slightly higher revenues, and the S&P 500 currently trades at a lofty 19.9X next twelve months earnings. Several market pundits have concerns about rising interest rates in conjunction with year-to-date returns of +16.63% for the S&P 500 and +32.89% for the Nasdaq. We are approaching what is generally known as the most volatile time of the year in the stock market. Review the Zacks research piece below for additional insight.
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.
BlackRock:
Zacks:
Capital Group:
J.P. Morgan Asset Management:
Janus Henderson:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500
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