From the desks of Stanley Katz & Lauren Madera
STAY SAFE & HAVE FUN!
The US stock market has increased 14 of the past 15 weeks under the assumption that the Federal Reserve will start cutting interest rates soon. Well, not so fast! With the US economy and employment statistics holding strong, it appears that the Fed may keep interest rates higher for even longer. In fact, some economists have started drum beats that we may not see interest rate cuts in 2024! The US stock market indices responded last week with minor losses (i.e., DJIA: -0.11%, S&P 500: -0.42%, Nasdaq: -1.34%).
Having said all that, the S&P 500 currently trades at 22.5X trailing 12-months earnings and 20.5X future 12-months earnings. If interest rates do decrease then, perhaps, that valuation seems appropriate. One barometer coming this Wednesday could be the high-flying AI chip maker Nvidia earnings report. Stay tuned, but read Schwab’s Weekly Trader’s Outlook “More volatility likely in the cards next week…”
Every day we seem to wake up to a wall of worry about things going on around us. Capital Group’s note “What’s right with the world” provides a ray of sunshine. Click the link 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.
Capital Group:
Schwab:
Parnassus:
Argus:
J.P. Morgan Asset Management:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500
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