Earnings continue their record-breaking trend. S&P 500 price gains have been driven by earnings growth as overall valuation has subsided. Record margin levels contributed half the earnings growth, but may be the main drag in 2019.
Star Trek’s Ferengi are a species whose culture is entirely based on commerce. Business is pleasure and money is everything. So how would a Ferengi invest in Earth’s stock market? What would their Blue Planet Portfolio look like?
We’ve heard that we should rebalance our portfolios. It’s good for us. Kind of like fiber. But why? How? And how often? Here are three popular methods that compliment most investors’ needs.
Stock market’s character has fundamentally shifted. Gains last year came almost entirely from earnings, and at the lowest volatility in three decades. Earnings growth is at a seven-year high. But future growth depends on margins already at nose-bleed levels.
While no investor who’s long the market enjoys a correction, negotiated properly, it can be turned to an advantage. At Coherent, we focus on proactively mitigating downside risks by actively managing our stock market exposure.
Investors are often apprehensive about how changing interest rates will affect their investments. Record low bond yields look poised to break out of a 6-year range. Will rising rates squash stocks? Burst bonds?
Earnings in 2017 have been spectacular. Estimates for 2018 have risen to a millennium record, and so have market valuations. But high margins levels caution for more reasonable expectations. The recent correction may just be an omen.
In the current stock market, irresistible forces for economic growth face seemingly insurmountable stock market barriers. GDP is finally spearheading economic growth. However, record operating margins stand a formidable shield against earnings growth.
Congress passed a new tax plan this week. Much anticipation and debate surround the effect of these tax cuts on the GDP, and by implication on the stock market. What realistic expectations can we have in the near term?
With third quarter reporting nearly concluded, S&P 500 companies are delivering growth rivaling post-recession 2010. Not surprisingly, valuations are also breaking records. Meanwhile, record margins present more challenging hurdles to 2018 growth.