CHIRP

Market Update – January 03, 2020

Happy New Year! Welcome back to the weekly Market Update. With some people still on vacation, we expect average to below average trading volume on the S&P 500. As of Thursday’s close, we have only had one trading day in 2020, but it was a positive one with the tech heavy NASDAQ leading the broader indexes, up 1.33%, followed by the Dow Jones Industrial average posting a gain of 1.16% and the S&P 500 increasing a respectable .84%.

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Market Update – December 20, 2019

Going back to the beginning of the year, most analyst were pessimistic thinking the markets would continue the decline that began September 20th, 2018 and ended Q4 with a negative -13.97%. However, that is not how the year turned out. Instead, the markets rallied and as of Thursday’s market close, the S&P 500 is up 27.86% YTD.

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Market Update – December 6, 2019

The Holiday Season officially kicked off last Friday with online sales reaching $7.2 billion, the second largest shopping day ever, coming second only to Cyber Monday last year[i]. The average person spent $168, an increase of 6% from last year.

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Market Update – November 22, 2019

By now, most investors are aware that the S&P 500 is doing phenomenal this year. As of Thursday’s close, stocks are up 25.88% Total Return (including dividends) compared to its historical annual average of about 10%. With such a strong year, investors are beginning to think the markets have gotten ahead of themselves.

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Market Update – November 15, 2019

This week Disney launched its much-anticipated streaming service called Disney+. This new revenue source for Disney is designed to compete with the other streaming services such as Netflix and Apple TV+. However, Disney has a stronger competitive advantage than their close rivals in this space.

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Market Update – November 01, 2019

We have been making the case that the U.S. economy is doing just fine and the equity market is not overvalued by conventional metrics. This week it was announced that the U.S. economy grew at an annualized pace of 1.9%, above what most economist thought. On the market side, the S&P 500 is trading at 16.7x next year’s earnings; the 25-year average is 16.22x[i]. We have positive growth in the economy and the markets are healthy, therefore we don’t think a recession is likely in the near term.

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Market Update – October 25, 2019

In last week’s Market Update, we discussed the importance of this earnings season. For most of the year, there have been two school of thoughts; either things are not going well in the economy and a recession is near or the growth in the U.S. economy is not great, but it is still moving forward and a recession is not imminent.

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Market Update – October 18, 2019

We are three weeks into the new quarter and all eyes are on earnings season. Our start of the year target price for the S&P 500 was 3100 by year end, which is about 3.4% from today’s level. The S&P has tested our price target a couple of times and has been met by resistance.

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Market Update – October 04, 2019

The U.S. markets closed out the 3rd quarter and posted strong year-to-date (YTD) returns. The S&P 500 closed out the quarter up 20.5% YTD (including dividends), while the Dow Jones Industrial Average posted gains of 17.5% YTD (including dividends).

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