Featured Journal Entry

IS ALL THE GOOD NEWS PRICED IN?

Last week we discussed whether stock prices might be reflecting peak optimism. In that commentary we noted that while sentiment may be overly optimistic and a pickup in volatility would be totally normal, strong breadth measures suggest stocks still may have more upside. This week we tackle that same topic of peak optimism, but by...

Journal Entries

August 21, 2019 | By Boone Wealth | Filed under: Weekly Market Commentary

TWEAKING OUR FORECASTS

We are tweaking our 2019 forecasts to reflect increased risk to economic growth and corporate profits from the ongoing trade conflict between the United States and China. We are maintaining our year-end fair value target on the S&P 500 of 3,000...

August 14, 2019 | By Boone Wealth | Filed under: Weekly Market Commentary

THE NEW (AB)NORMAL

Stocks endured significant volatility last week but showed some resilience Wednesday, August 7, when the S&P 500 Index dropped as much as 2% intraday before rallying back late to close slightly positive. Stocks ended the week near flat, putting...

August 7, 2019 | By Boone Wealth | Filed under: Weekly Economic Commentary

THE FED’S COURSE CORRECTION

The Federal Reserve (Fed) completed its U-turn in policy last week. Policymakers announced a 25-basis point (0.25%) rate cut July 31, its first in 10 years [Figure 1]. Rate cuts have been a sobering reality in investors’ short-term memories, as the...

August 7, 2019 | By Boone Wealth | Filed under: Weekly Market Commentary

SEASONAL SLUMP?

August has been one of the worst months for the stock market historically. In fact, it has been the worst month on average for the past 10 years, with the S&P 500 Index down an average of 0.78% for that month [Figure 1]. Last week’s 3.1% slide...

July 30, 2019 | By Boone Wealth | Filed under: Weekly Market Commentary