“The stock market is a device for transferring money from the impatient to the patient.” Warren Buffett
The markets like to create surprises and the last few weeks haven’t been any different, but the overall trend higher will continue. Earnings and GDP continue to rise.
The financial markets have continued to be dynamic and unpredictable, presenting both challenges and opportunities. Despite the fluctuations, your confidence in our strategies and the dedication of our team have enabled us to navigate these waters with resilience.
Earnings:
The blended earnings growth rates for the S&P 500 for Q2 2024 is 10.8%. This number will mark the highest earnings growth rate reported by the index since Q4 2021 (31.4%). Earnings in 2025 are projected to grow by 15.2% and revenue growth of 6%. The bottoms up target price for the S&P 500 is 6079, which is 14.3% above the closing price of 5319. (Factset Earnings Insight)
GDP:
The Atlanta FED GDPNow projects 2.9% GDP growth for the 3rd quarter of 2024. (GDPNow) Global growth is projected to be in line with the April 2024 World Economic Outlook (WEO) forecast, at 3.2% in 2024 and 3.3% in 2025. (BEA)
We believe, we are still in a Secular Bull Market with many years left in its path. If that changes, we will adjust. As we’ve emphasized in our prior conversations, stocks are in a long -term upward trend, and that trend is incorporated into your financial plan, but stocks don’t rise in a straight line. Be prepared for setbacks and use those as opportunities to add to equities when appropriate. Remember that we prefer to own stocks and not rent them for the long term.
Lastly, I want to thank you for your trust and your confidence in our services means the world to us, and we look forward to continuing this journey together in the coming years.
Williamson Wealth Management
Harry S. Williamson, WMS
First Vice President, Investments
Financial Advisor
Any opinions are those of Harry Williamson and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions or
Forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Past performance does not guarantee future results. Future investment performance cannot be guaranteed, investment yields will fluctuate with market conditions.
The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S .stock market.
Prior to making an investment decision, please consult with your financial advisor about your individual situation.
