Hello and Welcome to our September 2020 Financial Planning and Capital Market Update!
If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast audio format as well as Video!
Newbies –
We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets and current events!
Hope you enjoy!
September Video
(YouTube)
Financial Planning Tip –
Markets Gone Too Far
In a luckily timed post here in our August review and again here in September we mentioned that markets had gotten far enough ahead of themselves, we had to waive the white caution flag…
Oddly, within days of our original white waiver, markets slipped … always rather be lucky than good – markets breathed caution in the air quickly with a sharp 10% correction — Safety is still advised!

Capital Market Comments
Inflation & The FOMC
In a somewhat preliminary discussion on what might change market sentiment, not knowing it had already adjusted a bit, here , here , here we discussed inflation measures, the FOMC (Federal Open Market Committee) and their views along with our personal favorite inflation measure, Dallas Federal Reserves own Trimmed Mean inflation gauge.

Have a Great September Update!
Talk to you at the end of October!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
Market Valuation Update … How are we doing? Forward PE Ratio Review
As mentioned multiple times … with recent examples here and here by almost any metric Capital Market valuations have been and are stretched.
As a reminder this does not mean that markets have to come tumbling down to earth … just that heightened risks of sharper declines may be possible. Also as a reminder, just like our teenager with oversized clothes grows into them … as earnings increase faster than Capital Markets rise, valuations can come back in line! YAY
Updated Valuation Metric from our Friends at JPMorgan
And while still stretched take note of the very far right of the graph as it has smartly turned over as earnings outpaced Capital Market Growth
This is why the Graph is moving in a better direction – huge expected earnings in view….
Nice….
Still no time to swing for the fences, which we never do- but good progress…
Have a Great “Better Valuations” 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
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Posted in Earnings, Economy, General Financial Planning, Investing/Financial Planning, Market Comments
Tagged Earnings, Earnings Season, Forward PE, JPMorgan, Market Valuation, Markets, PE Ratio