From the desks of Stanley Katz & Lauren Madera
STAY SAFE & HAVE FUN!
This Sonny & Cher song title captures what’s been happening to the major US stock market indices. All three posted gains this week (i.e., DJIA: +1.96%, S&P 500: +2.29%, Nasdaq: +2.85%) hitting new highs. Several foreign stock market indices like South Korea’s Kospi, Europe’s Stoxx 600 and Japan’s Nikkei 225 have hit historic highs too. In concert with the US Federal Reserve Bank, other world central banks are contemplating interest rate reductions. That seems to be the theme driving global stocks upward. Historically, recessions don’t occur when the US housing market remains strong. But, as expressed in past Weekly H&Cs, the S&P 500 price-to-earnings ratio sits at 23.19X trailing 12 months-earnings and 21X forward earnings. That’s above average. Click the link below for Schwab’s Weekly Trader’s Outlook.
At this juncture, we continue to question when, not if, the Federal Reserve will start cutting interest rates. Most interest rate prognosticators predict three cuts of 25 basis points (0.25%) by year end with the first occurring in June 2024. The US stock market seems to be counting on it! Read the J.P. Morgan Asset Management epistle below for more on this topic.
For an interesting look into the future, Capital Group’s “The Long View – 4 Megatrends to watch” provides an interesting perspective for generations to come.
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.
Schwab:
J.P. Morgan Asset Management:
Capital Group:
Argus:
Northern Trust:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500
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