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.
The information here is presented by licensed professionals and not specific to any individual’s personal circumstances. Investment advisory services offered through LifePro Asset Management, LLC, a registered investment adviser. Investments involve risk and are not guaranteed. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy will be profitable or equal any historical performance. Discussion of any specific stocks are based on objective, non-performance criteria and such discussion neither serves as a recommendation nor as the receipt of, or a substitute for, personalized advice. Due to various factors, including changing market conditions, such discussion of positions and/or recommendations may no longer be reflective of current position(s) and/or recommendation(s). Moreover, no client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from Advisor, or from any other investment professional. Forward-looking statements such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” are based on management’s views and assumptions at the time such statements were originally made and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. LifePro Asset Management does not undertake any obligation to correct or update any forward-looking statements on the LPAM Site.
