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Jan 23, 2025 | 
advisorperspectives.com | Liz Ann Sonders |Kevin Gordon
The "pandemicycle" (yes, that's a new term from us) has been unique in myriad ways; including multiple divergences within the economy. Divergences have occurred within the economy between goods and services, cyclical and noncyclical segments, and discretionary and nondiscretionary categories of spending; among others. A divergence we're tackling today is between soft and hard economic data.
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Jan 21, 2025 | 
schwab.com | Liz Ann Sonders |Kevin Gordon
The "pandemicycle" (yes, that's a new term from us) has been unique in myriad ways; including multiple divergences within the economy. Divergences have occurred within the economy between goods and services, cyclical and noncyclical segments, and discretionary and nondiscretionary categories of spending; among others. A divergence we're tackling today is between soft and hard economic data.
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Dec 9, 2024 | 
schwab.com | Liz Ann Sonders |Kevin Gordon
We've often chuckled at comments about "markets hating uncertainty"…as if there have ever been periods of certainty. But as we close the books on 2024 and peer into 2025, perhaps the uncertainties this time are of a magnitude beyond the norm. For illustrative purposes only.
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Nov 25, 2024 | 
schwab.com | Liz Ann Sonders |Kevin Gordon
It's been an eventful few weeks. On the heels of the presidential election, stocks initially rallied with force, reflecting investor optimism over potential regulatory rollbacks and lower corporate tax rates. Shown via the blue bars in the chart below, equity indexes and the Magnificent 7 (Mag7) group of stocks were up between 3% and more than 7% in the days immediately following the election.
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Oct 30, 2024 | 
advisorperspectives.com | Liz Ann Sonders |Kevin Gordon
So far this quarter, S&P 500 companies are impressing when it comes to earnings releases outpacing analysts' estimates. As of the end of last week, the earnings "beat rate" stood at a better-than-average 79%, down slightly from 79.4% in the prior quarter (of course, with the caveat that we are still somewhat early in the season). Moving up the income statement, things are less stellar in terms of the top line, as the revenue beat rate is tracking at just 59.4%.
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Oct 28, 2024 | 
schwab.com | Liz Ann Sonders |Kevin Gordon
So far this quarter, S&P 500 companies are impressing when it comes to earnings releases outpacing analysts' estimates. As of the end of last week, the earnings "beat rate" stood at a better-than-average 79%, down slightly from 79.4% in the prior quarter (of course, with the caveat that we are still somewhat early in the season). Moving up the income statement, things are less stellar in terms of the top line, as the revenue beat rate is tracking at just 59.4%.
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Oct 16, 2024 | 
advisorperspectives.com | Liz Ann Sonders |Kevin Gordon
In markets, a year can feel like a lifetime. Ditto for two years, which is how old the S&P 500's current bull market now is (as of a couple days ago). While that calls for celebration, it perhaps begs for a deeper analysis into the unique nature of this run, what sets it apart from prior bull markets, and the outlook for its longevity. Before getting into the meat of the current bull, it's instructive to look into its origins.
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Oct 14, 2024 | 
schwab.com | Liz Ann Sonders |Kevin Gordon
In markets, a year can feel like a lifetime. Ditto for two years, which is how old the S&P 500's current bull market now is (as of a couple days ago). While that calls for celebration, it perhaps begs for a deeper analysis into the unique nature of this run, what sets it apart from prior bull markets, and the outlook for its longevity. Before getting into the meat of the current bull, it's instructive to look into its origins.
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Sep 3, 2024 | 
schwab.com | Liz Ann Sonders |Kevin Gordon
The Federal Reserve has 12 districts around the country, but only one mission: to keep investors guessing. It's that time of the cycle to switch from pause mode to cutting mode, with consensus gelling around a 25 basis points cut at the September Federal Open Market Committee (FOMC) meeting in mid-September, while there are adherents to the 50 basis points view.
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Aug 16, 2024 | 
schwab.com | Liz Ann Sonders |Kevin Gordon
How will the stock market behave when the Federal Reserve starts lowering rates? It's a question we get often—but unfortunately one that doesn't have a simple answer. The Fed has embarked on 14 rate cycles since 1929, and, in retrospect, some patterns emerge. First, it's important to note that past performance should be taken with a grain of salt, and 14 interest rate cycles hardly constitute a statistically significant sample size.
