Is the Market Stuck?

Economy and stock market’s fundamentals are strong right now. Year-over-year earnings growth is currently at 20%. It looks like the final year-over-year earnings growth for 2018 will probably be somewhere closer to 15%. The yield curve is still positive (Yield curve is bearish for the market once it becomes inverted). Inflation growth is still muted. … Continue reading Is the Market Stuck?

ETF Update

A few ETFs we're looking to add to portfolios. HACK, CIBR Conceptually I believe cyber security will only become more important. High expense ratios - .64% & .60% Decent returns although a short track record, CIBR came in on 7/7/2015 and HACK on 11/11/2015. The article is over a year old, but why rewrite it, … Continue reading ETF Update

Valuation

Before the February/ March price decline, stock prices were at a cyclical high with the trailing PE (price/earnings ratio) in the mid-20s. However, based on the estimated earnings for the next 12 months and the S&P 500 Index at 2641 on March 30, the forward PE is around 17X. That ratio is in line with … Continue reading Valuation

US Economy

The recent headlines and resulting sharp decline in the stock market has created a lot of anxiety in the short-run, but in the long-run markets are driven by fundamentals, primarily corporate earnings and economic growth. The latest data shows that fourth quarter GDP growth was revised up to 2.9% from an estimate of 2.7% and … Continue reading US Economy