The Federal Reserve has finally cut interest rates, a move that the market had eagerly anticipated for some time. Over the past year, investors consistently speculated that rate cuts would happen sooner and be larger than what ultimately transpired. The Fed reduced the Federal Funds Rate, or the overnight lending...
Jubilant emotions related to the Artificial Intelligence (AI) revolution are likely clouding investors' perceptions. Investors can’t seem to get enough. A handful of stocks are altering the perception of the stock market and likely the demand of non-AI companies. Through June 14 YTD, the S&P 500 Index was up 14.6%...
A great number of pundits are calling the S&P 500 overvalued based on the PE Ratio (current price divided by earnings-per-share) when compared to historical levels. We, however, think it looks reasonably valued. This comparison could be made based on the trailing earnings or based on analyst expectations for next...
Nobody has a crystal ball; Wall Street certainly doesn’t. At the end of last year, most economists were predicting a recession in 2023. The average prediction for the S&P 500 for 2023 was 4,029; a 5% increase from year-end. Flash forward to almost year-end - we certainly aren’t in a...
The US economy continues to be very resilient. Pundits have been predicting a recession for a while, and many still are predicting one. A major reason for resilience has been the relative strength of the consumer. Employment levels have remained very strong with the unemployment rate at 3.8%. The September...
The U.S. economy and consumers have been a lot more resilient in 2023 than many expected. Entering the year, most economists predicted a recession due to the high inflation rate and the aggressive interest rate increases from the Federal Reserve. Flash forward to mid-August, and inflation has been declining for...
