From the desks of Stanley Katz & Lauren Madera
STAY SAFE & HAVE FUN!
The S&P 500 has posted gains 14 out of the last 15 weeks. Although that streak is not as long as the 27 straight wins by Wilt Chamberlain’s 1971 Los Angeles Lakers, it’s still pretty impressive! In fact, all three major US stock market indices were positive this week (i.e., DJIA: +0.04%, S&P 500: +1.37%, Nasdaq: +2.31%) with the S&P cracking the 5,000-point mark on Friday. One might say the sky is the limit, but, currently, the S&P 500 trades at a hefty 22.11X trailing 12-months price-to-earnings multiple and 20.4X forward 12-months multiple.
Lots has been written about the tech sector’s valuation at approximately 1/3 of the US stock market. That’s the highest since the dot.com bubble of July 2000. The primary difference in 2024 is that these tech companies have earnings! J.P. Morgan Asset Management’s “Should investors be bullish or bearish on US equities?” offers some interesting insight. Click the link below.
The other driving force behind the US stock market’s advance has been expectation of lower interest rates. As noted in last week’s H&C, the Fed Committee decided to leave interest rates at the current level for the time being. Though, in his press conference, Chairman Powell indicated that the future direction of the Fed Funds rate will be lower. Below is a research piece by Janus Henderson titled “Rate cutting cycles in US back to 1969,” which may provide some color on what to expect in the future.
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:
Janus Henderson Investors:
BlackRock:
Hartford Funds:
Capital Group:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500
Investing involves risk, including the possible loss of principal. The information contained herein has been prepared solely for informational purposes. Nothing contained herein should be construed as a recommendation to either buy or sell any security or economic sector, or implement any strategy discussed. Please consult with your financial advisor, accountant, and/or attorney before acting on this information. ClientFirst Financial Strategies, Inc. is a DBA of OneSeven, LLC (OneSeven). OneSeven is an investment advisor registered with the U.S. Securities and Exchange Commission (SEC). Registration with the SEC does not imply a certain level of skill or training. Securities offered through Fortune Financial Services, Inc. (Fortune), Member FINRA/SIPC. OneSeven and Fortune are separate entities. Investment Products are Not FDIC Insured, Offer No Bank Guarantee, and May Lose Value.
OneSeven and Fortune do not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third parties.