March 28, 2024
By Peter Bower
Soon, most public companies will be reporting their 1st quarter results. We are now within the quiet period when companies cannot make statements about those results. They and key employees are also precluded from making transactions in their own securities. That is not to say that analysts and investors will not anticipate what is coming.
Their general expectation is that earnings for the S&P 500 will grow by 9.5% to 13% this year. That would be outstanding and support the strong stock market we have been experiencing. Certainly, there will be a few surprises, both positive and negative, that vary significantly from expectations. These will not derail the stock market rally unless something points to a generalized problem. The Bull and his partners believe that is unlikely.
Small and mid-sized companies have lagged the results from large companies this year. In fact, the spread between those returns on small versus large companies is at an all-time high. This will not persist. This points to opportunity by including these companies in portfolios. Of course, good selection is paramount. It always is across all asset classes. So, enjoy and stay steady my friends.
The Lonely Bull
