From the desks of Stanley Katz & Lauren Madera
HAPPY GRANDPARENTS DAY!
“LOVE IS THE GREATEST GIFT THAT ONE GENERATION CAN LEAVE TO ANOTHER.” — RICHARD GARNETT
The three major U.S. stock market indices posted modest declines this week (i.e., DJIA: -0.52%, S&P 500: -0.31%, Nasdaq: -0.02%), reflecting a natural pause after strong summer performance. JPMorgan’s post-Labor Day analysis highlights the market’s impressive year-to-date gains. Valuations have stretched with the S&P 500 trading at 22.4 times forward earnings—1.6 standard deviations above its 30-year average. Time will tell whether this is a warning or simply a reflection of strong earnings growth and investor confidence in continued economic resilience. To note, the top 10 holdings in the S&P 500 now account for nearly 40% of the index and trade at premium valuations that reflect their market leadership. This concentration in mega-cap stocks presents both opportunities and considerations for portfolio diversification.
Housing markets are showing signs of gradual rebalancing despite ongoing affordability challenges that have kept many potential buyers on the sidelines. Homeownership rates have declined from pandemic highs and mortgage payments require substantial monthly income commitments—about 10 days of work for the average homeowner. Schwab’s analysis reveals encouraging regional trends, particularly strong inventory growth in western states that could help ease supply constraints over time. Consumer sentiment about housing remains subdued. But improving supply dynamics, stabilizing price growth, and potential shifts toward adjustable-rate mortgages could gradually restore balance between buyers and sellers and offer hope for renewed accessibility in America’s housing market.
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:
Schwab:
Capital Group:
Zacks:
James Investment Research:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500
Source for weekly stock market returns: Barron’s.
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