S&P 500

Are Future Earnings Estimates Positive Or Negative?

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In this article we will look at what drives stock prices: valuations and earnings. Anytime we discuss monetary policy or the economy, we are doing so with the intention of figuring out how valuations and earnings will be affected. As you probably are aware of from our articles, the US…CONTINUE READING

The Debt Is High, But Does It Matter?

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The US stock market has been on a fantastic run in 2018 even though returns are close to the historical average because other markets have seen weakness. As you can see from the chart below, US stocks underperformed last cycle and outperformed this cycle.  Source: Bank Of America Merrill Lynch…CONTINUE READING

Optimism Doesn’t Match Economic Growth

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In this article we will be showing various data points from different perspectives. We like to give you all the information to make the best possible decisions. The goal isn’t to push any narrative, political agenda, nor market perspective. The value provided is helping you understand the details behind various…CONTINUE READING

Past & Future US Equity Performance

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Everyone knows the bull market is 9 years old; it is the longest bull market ever. However, the length of the bull market is largely irrelevant because it came very close to ending. It’s arbitrary to say a bear market is a 20% decline, but not a 19% decline. Returns…CONTINUE READING

Are You Paying For Your Neighbor’s Vacation?

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Financial security and stability have immense value just like any product or service. It can become a product as is the case with insurance. It’s clear financial stability has value, but how do we pay for it outside of insurance? The two most prominent ways we pay are through delayed…CONTINUE READING

Are New Valuation Methods Valid?

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Some investors believe in maintaining the use of old models because they have historical precedence; new ideas can be risky to try. One example which comes to mind is when the 1990s tech firms were valued based on eyeballs instead of earnings. Believing in new models can easily turn into…CONTINUE READING

Revenue Growth Drives Shareholder Returns

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The market works in long term cycles even though it seems like changes occur often. There will always be news which drives short term action, but in the long run there are strategies which last for years or even decades. In the past 11 years, growth stocks have outperformed value…CONTINUE READING

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