In that week over week view the S&P 500 (SPY) is +1.56% above last Friday’s tally which is a welcome sit. Gladly POWR Value Portfolio is up +3.58% in that time.
Earnings season is currently taking center stage. There have been some big misses like Meta/Facebook and Goldman Sachs.
But gladly even more impressive beats like Microsoft, Apple and Amazon (and a few of our own in the POWR Value portfolio like Columbia Sportswear today).
The key is that the overall quality of earnings season, with mostly raised guidance for the future, is rebuilding investor confidence that they need to get back to riding the bull.
That’s because with all the negatives recently highlighted like inflation, Fed action, Omicron etc is still not knocking the economy off track. And if that is true…then there is no need to keep hitting the sell button.
Furthermore ISM Services this week came in at a robust 59.9 with New Orders even better at 61.7. Once again, anything above 55 on these ISM reports is a sign of great economic improvement.
ISM Manufacturing earlier in the week was almost as strong as the Services reading.
That economic improvement party continued this morning with a MUCH better than expected Government Employment report.
It was only supposed to show 30,000 jobs added given the typical January release of extra workers hired temporarily for the holiday shopping season. And yet that came in at 467,000 jobs added.
Reity, are you saying the market will just be on a big bull run from here?
No. I am saying the long term picture is bullish. And we will make new highs this year.
What is unclear is the journey to get there because each day is a mystery. And the pattern of positive vs. negative days is nearly impossible to guestimate in advance.
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