S&P 500

Record High Profit Margins Might Not Mean Revert

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Reading Time: 5 minutes S&P 500 profit margins are a pivotal topic to discuss when forecasting the overall market’s direction. It’s traditionally thought that margins are cyclical and mean reverting metrics. This means they go up and down. When they go up, it’s expected they will fall and when they go down, it’s expected…CONTINUE READING

What Could Go Wrong? Third Longest Expansion Since 1854

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Reading Time: 5 minutes 2017 marked what could be considered a seemingly perfect time in history. Some of the primary factors that contributed to this goldilocks scenario has been record low interest rates and volatility, quantitative easing, high stock valuations, easiest financial conditions since 1993 based on the National Financial Conditions Index or from 1970…CONTINUE READING

Bull vs Bear Market: Historical Gains & Losses

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Reading Time: 7 minutes Bear Market Definition: A bear market is defined as an event where asset prices decline in excess of 20% for at least 60 days. In contrast, if a decline in asset prices in excess of 20% occurs for less than 60 days this is referred to as a “market correction”.…CONTINUE READING

The Divergence Between S&P 500 And Gross Tax Receipts

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Reading Time: 4 minutes Ten years following the global financial crisis of 2008, the US economy is showing an impressive growth trajectory based on GDP numbers. The economy reached $18.75 trillion in size in 2016. The S&P 500 is reaching new highs almost on a weekly basis and also showing a positive growth trend. But…CONTINUE READING

Is The Market About To Crash?

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Reading Time: 5 minutes The number of bears issuing dire warnings increased after the 2008 financial crisis. There’s a mixture of groups in this category. Some of these prognosticators had legitimate fears as it was one of the worst recessions in US history. Others just spread fear by selling books and ads on articles…CONTINUE READING

Why Are Stocks Going Up?

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Reading Time: 5 minutes Investors who are bearish on the stock market often claim that they don’t know why stocks are moving higher. It makes them look silly because stocks move higher most of the time. The real question should be why stocks aren’t moving higher when they go down. It makes sense to…CONTINUE READING