Back to the Future: 1995 Redux?
In this week’s edition of the LifePro Asset Management Market & Portfolio Review, our head of Wealth Management, Robert Reaburn, reviews the stock market and economic reacceleration of 1995 and asks whether a similar stock market surge could take place today if we saw an economic reacceleration, backed by low interest rates.
Robert also reviews last week’s jobless claims data to make sure there are no early signs of labor market deterioration and also conducts a quick check of the credit markets to measure the health of the US economic foundation. Additionally, we review how the U.S. Federal Reserve responded to the minor economic pause earlier this year and how we use the bond market yield curve to measure the effectiveness of their response.
We also review corporate earnings and how companies are executing relative to expectations. More importantly, we take a close look at the direction earnings growth revisions for 2020 and what that tells us about the possible direction of stock prices. Lastly, we quickly review the impact of stock market highs and seasonality on forward market returns and how we are positioning client portfolios as a result.
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