From the desks of Stanley Katz & Lauren Madera
STAY SAFE & HAVE FUN!
All three major US stock market indices were down for the week (i.e., DJIA: -2.21%, S&P 500: -2.11%, Nasdaq: -2.59%). We’re not sure whether this is attributable to or despite several decent economic indicators, including retail sales, housing starts, and industrial production. Interest rates continue to climb—now 5%+ on two years and less maturity—due to a large new issuance of US Treasury securities alongside an economy that continues to chug along. This renders the stock market a less attractive investment relative to other options. Click the Argus Economic Commentary link for an in-depth analysis of where things currently stand.
As we all know, the US stock market pretty much came out of the gate fast and furious in 2023 on the heels of a disappointing 2022. Beginning of the year estimates of S&P 500 earnings per share (EPS) were $190-$195. The current run rate on 2023’s EPS is $219, which tells us why the US stock has performed so well. Current projections for 2024 EPS range from a high of $246 to a low of $210. Even on the low end, with the S&P 500 having closed the week at 4370.36, the price-to-earnings ratio stands at 20.8X! It might be a good time to read this week’s Capital Group’s “5 investing mistakes to avoid.”
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.
Argus:
Capital Group:
Northern Trust:
J.P. Morgan Asset Management:
Janus Henderson:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500
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