Call Us (904) 346-3460
 In The Lonely Bull

Corporate America has been putting on quite a display of impressive profit growth this quarter.  This is especially true among the more business cycle oriented companies, but also applies across the board.  A preliminary estimate is for earnings to grow about nine percent from the same period last year; impressive.  Since earnings are the most basic driver of stock prices, this bodes well for stock market gains this year.

The earnings we are seeing this quarter have very little to do with the new Presidential administration and a lot to do with reflationary trends in place since the winter of 2015, 2016.  At that time, in response to the world-wide collapse in commodity markets, central bankers everywhere opened the spigots and flooded the world’s financial system with liquidity.  That effort has produced the better environment we see today. 

Policies, yet to be put into place, have the opportunity to extend and enhance the good business conditions we already have.  We like much of what has been proposed.  We are keeping our fingers crossed and look forward to an exciting period for investors.  Stay steady, my friends.

El Solo Toro

Recent Posts