A Note from Cokie: While the U.S. equities hit a slump amid lingering concerns about havoc created by volatile retail trading, treasury yields and gold gained. Alphavest clients are in a great position. This is because we set a “no worry” plan in place for each one of you! So, keep your focus!
Yes, GameStop Corp. and AMC Entertainment Holdings Inc. soared. You saw the madness taking place but don’t buy into it. So, there was a little bit of quick activity but it will be short lived. Over all earnings beat expectations!
So, what do you still want to keep your eyes on during this first quarter: our robust economy and the next stimulus package. Will these offer the relief needed by most Americans?
If you are a small business owner and need financial advice, please schedule a free “peace of mind” consultation with me. Or if you are having difficulty when you look at your portfolio, schedule a free 15-minute consult and checkup!
Knowledge is always powerful! Let me help you understand what is on tap for this coming year and how to navigate through it! The following is a weekly update from Wealth Enhancement & Preservation.
This Week in Review
One of the concerns of market watchers has been the valuations of stocks. Stocks are currently trading at about 23 times 2021 earnings, above the historical range of 15 to 17 times forward earnings.4
Today’s valuations may be explained by expectations of a strong economic rebound and a concomitant rise in corporate profits. So far, this earnings season appears to vindicate the optimism; With 41 of S&P 500 companies reporting through last Thursday, 91% of them have exceeded estimates by an average of 18.5%.5
Investors are expected to continue to watch company earnings in the weeks ahead to see whether these consensus-beating results continue.
This Week: Key Economic Data
Tuesday: Consumer Confidence.
Wednesday: Durable Goods Orders. FOMC (Federal Open Market Committee) Announcement.
Thursday: Gross Domestic Product (GDP). Jobless Claims. New Home Sales.
Source: Econoday, January 22, 2021
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
This Week: Companies Reporting Earnings
Monday: KimberlyClark (KMB).
Tuesday: Microsoft (MSFT), General Electric (GE), Advanced Micro Devices (AMD), Verizon (VZ), Johnson & Johnson (JNJ), Lockheed Martin (LMT), Starbucks (SBUX), 3M Company (MMM), Texas Instruments (TXN), Novartis (NVS), D.R. Horton (DHI).
Wednesday: Apple (AAPL), Facebook (FB), AT&T (T), Boeing (BA), Abbott Laboratories (ABT), ServiceNow, Inc. (NOW), General Dynamics (GD), Norfolk Southern (NSC).
Thursday: McDonalds (MCD), Comcast Corp. (CMCSA), Southwest Airlines (LUV).
Friday: Caterpillar (CAT), Chevron (CVX), Eli Lilly (LLY), Honeywell International (HON), Charter Communications (CHTR).
Source: Zacks, January 22, 2021
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
|1. The Wall Street Journal, January 22, 2021|
2. The Wall Street Journal, January 22, 2021
3. The Wall Street Journal, January 22, 2021
4. CNBC, January 21, 20215. Earnings Scout, January 21, 2021
6. IRS.gov, October 1, 20207. RealSimple.com, December 12, 2018
|Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.|