From the desks of Stanley Katz & Lauren Madera
In celebration of Thanksgiving, the ClientFirst Weekly Highlights & Commentary will not be published next week. We hope you have a safe and joyful holiday!
It is now three weeks in a row that the three major US stock market indices produced gains (i.e., DJIA: +1.94%, S&P 500: +2.24%, Nasdaq: +2.37%). In fact, this recent string marks the largest gains over a three-week stretch since 2020! The primary impetus for the spike is the CPI (Consumer Price Index) report, which came in lower than expected. This may indicate that the Federal Reserve’s interest rate increases appear to be lowering inflation as intended. Northern Trust’s “Sticking the Soft Landing” piece (starting on pdf page 7) provides some interesting analysis of what’s to come next year in the US.
Currently, the S&P 500 trades at a PE (Price/Earnings) ratio of 19.95X. That’s a lofty level. However, the momentum of the market heading into yearend may extend the rally. The question remains whether corporate earnings can justify it. J.P. Morgan Asset Management poses that very question. Schwab’s “4 Weak Spots in the Current Market” exposes areas of weakness to be aware of. Click their links below.
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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