2025 Profit Warnings: Should Investors Worry?
High Valuations Elevate Risks Amid Typical Q4 Forecast Declines As year-end approaches, Wall Street analysts are engaging in a familiar practice: trimming their profit forecasts for the coming calendar year. By mid-November, expectations for S&P 500 earnings in 2025 had dropped to $274.96 per share, down from $279.68 in June and $276.66 in late September, […]
Fed Signal Flashes Warning After 10 Years
Bears Are Betting on This Earnings-Based Market Predictor — But It Rarely Delivers No, the “Fed model” isn’t poised to sink the stock market anytime soon. The model, well-known among market enthusiasts, compares the stock market’s earnings yield (the inverse of the P/E ratio) to the 10-year Treasury yield. According to its adherents, equities are […]
Post-Election Optimism Fuels Market Gains
Stock Markets Rally After Trump’s Election Win, But Questions Linger The stock market surged following the announcement of Donald Trump’s victory in the 2024 U.S. presidential election. Investors initially welcomed the result, driving major indices to record highs by the end of election week. The Dow Jones Industrial Average gained 4.6%, the S&P 500 rose […]
Powell Signals No December Cut, Stocks React
Economic Strength Allows Fed to Tread Carefully, Says Chair Powell Federal Reserve Chair Jerome Powell stated Thursday that there’s no need for the central bank to rush into lowering its benchmark interest rate, citing a resilient economy that supports a cautious approach to rate decisions. Speaking to business leaders in Dallas, Powell remarked, “The economy […]
Dow Shrugs Off Inflation, But Yields Signal 2025 Concern
Investors are increasingly focusing on inflation’s long-term outlook, even if today’s consumer-price index (CPI) reading met expectations and didn’t shake markets significantly. The latest CPI data drew investor attention as they also considered potential inflationary effects of policies proposed by Donald Trump in his bid for a second presidency. “While investors brushed off today’s inflation […]
Should You Leave Stocks? Here’s Why to Hold On
Despite recent strong stock performance, Deutsche Bank strategists reminded investors that the past 25 years haven’t been particularly stellar for stocks. Their report outlines how, since 2000, global markets and economies have been shaped by rising debt levels, slower demographic growth, and stalled globalization. In 2000, for instance, the U.S. Congressional Budget Office anticipated paying […]
