Tag Archives: JPMorgan

Earnings Matter, ultimately the most, let’s take a peek at how they are doing

With earnings being the ultimate driver of Capital Markets it’s always good to stick our heads down into the weeds occasionally to see how corporate managers are navigating the waters.

Our favorite go-to source for this information is from our friends at Factset, a research arm that does terrific tracking …

Here are a few charts with our notes:

This following is an estimate of Earnings for the remainder of 2019 and for the year 2020 – notice expectations are positive year over year 2018 to 2019 but not much growth is expected from the analyst community – Tariff agreement would likely change this expectation quickly…

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Next up, how the change in estimates has occurred in real time – take note of the drop near the end of the year 2018 – while it looks like a larger than normal drop, and we prefer it increasing, it is only about a 5% total expected drop but again still a year over year increase as seen from the prior chart.

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Lastly, we had to throw one of our favorite charts in from our friends at JPMorgan – the lagging blue line, that actually looks out of place, is the current market expansion rate – note how slow this expansion (2007-current) has been. We find this very interesting as even the 2001 expansion was at a much faster pace than our current. Could we be entering an extended period of slower, but more stable growth? This would also speak to lessened concerns of inflation and lowered expectations moving forward…

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Overall, lets give corporate managers an A to almost A+, especially those dealing with overseas trading partners of any kind.

Have a Great “Update Earnings” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents

Higher Interest Rates Can be a Good Thing

There is much rhetoric about higher interest rates being a headwind for equity markets. Heck we have even mentioned it multiple times. While we agree the immediate/short term reaction may be a headwind, longer term may be a much different story.

A Silver lining found?

Higher Interest Rates CAN be a good thing

From our friends at JPMorgan

Raising Rates Good

If you are scratching your head a little about this chart, not to worry, we did too.

Rates currently reside in the lower green area, well BELOW the stagnation dot. According to JPMorgan’s analysis, raising rates would actually stimulate demand as rates are so low now they are having a stifling affect rather than stimulative.

Look for a much deeper dive into this in our coming Newsletter, and a soon to be released post (as promised earlier) on just how many times rates have been raised during an election year … We were very surprised, and bet you will be too !

Have a Great Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com

 

 

Class Action Settlements … JPMorgan. (Clients Only)

Recently there have been a couple of mass notifications regarding Class Action Settlements, most recently with JPMorgan.

Not to worry, we participate as a group for all applicable. Donald uploads all the date needed at once, rather than individually. The forms you receive are not necessary.

No action is needed from your side!

Thanks to all who let us know!

Have a great day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com