Q: Are stocks too expensive for investors right now? A: 24 times trailing earnings vs. an average of 20 times. Price to earnings growth is slightly below the 10-year average. “PappaDean” McGowan points out that the universe of publicly traded stocks is shrinking at about $3 trillion per year. Q: What consumer categories have massive inflation recently? A: In January …

Q:  What is “Capitulation” buying in the financial markets. A:  After extraordinary rallies in an investment sector or asset class, investors left behind finally begin to buy in to avoid missing out. Often, the resulting capitulation buying rally marks a peak price for the asset. Q:  What are some examples of dangerous overpricing in the equity markets for investors? A:   1970s    “Nifty Fifty”        1990s    “Dot-Com” …

Q: What was a positive surprise for U.S. investor’s this week? A: The growth rate spiked to 4.2% for the 1st Quarter of 2024 according to the Atlanta Federal Reserve’s GDPNow growth model. Q: What can Caterpillar shares tell investors about a potential booming global economy? A: Caterpillar’s most recent earnings report showed 12% revenue growth and a 40% spike …

Q: Net Zero Carbon Emissions? Q: Bitcoin Exchange Traded Funds (ETFs) = $1.5 Million Per Coin? Q: Cannabis Stocks? Q: Does Real Estate Always Goes Up? Q: Are Investors Better Off Now Than 2019? Q: Is There an “Artificial Intelligence (AI) Supercycle?” Q: What Type of Performance Have McGowanGroup Clients Seen Over the Last 22 Years?   Headline Round Up …

Q: Should investors buy Bitcoin Exchange Traded Funds (ETFs)? A: So far, the premise of massive money flows into Bitcoin driven by the launch of ETFs has not come to fruition. The charts below for Fidelity and BlackRock ETFs illustrate that point for now. Q: Why are the equity markets “smooshy” year to date? A: The McGowanGroup sees three factors …

Q: What was this week’s news regarding the major Bitcoin Drama? A: Monday Bitcoin spiked to near $48k per coin when a seemingly authentic tweet from the SEC’s X account announced approval of Spot Bitcoin Exchange Traded Funds (ETFs). A short time later, the SEC tweeted that their X account had been hacked & the previous message was unauthorized. At …

McGowanGroup Wealth Management Q1 2024 Client Update January 4th, 2024 2 Years in the Desert The large equity gains in the financial markets of 2023 essentially returned the major indexes to the same levels as the close of 2021, no progress for 2 years. Overall, our managed accounts performed above the indexes with great resiliency during the declines. A 2024 …

Q: What were some of the biggest financial market surprises of 2023 & What are some of the forecasts for the equity markets in 2024? A: The Federal Reserve might have been able to stick a “Soft Landing”? The S&P 500 Index going over 5000? Gross Domestic Product (GDP) Growth Numbers between 1.4%-2.7% in 2023? Potential interest rate cuts in …

Q: What are some of the key explanations for the year end Santa Claus Rally in the financial markets? A: Some reasons include recent low inflation/deflation, Federal Reserve interest rate cut projections for 2024, positive economic/profit forecasts, and soft-landing expectations. Q: Alex, gives us some insight as to why the “Grinch” stole over 500 Dow Jones points from the Santa …

Q: What are some of the reasons the equity markets spiked this week? A: The Federal Reserve (Fed) indicated in Wednesday’s projections the potential for three interest rate cuts in 2024. The equity markets anticipated lower financing costs over the longer term resulting in higher profits as well as increased net present values of future cash flows. Q: What companies …