And just like that, the S&P 500 is back to hitting new all-time highs. This is happening thanks in large part to an accommodative Federal Reserve, who for the third time this year cut interest rates by 25 basis points on October 30. The benchmark federal funds rate now sits at 1.5% to 1.75%. #-ad_banner-#Also helping is the fact that the trade war with China has simmered. In fact, it looks like we may get a Phase 1 agreement soon. (Although I wouldn’t hold my breath. This is far from over.) And finally, third-quarter earnings have been better than expected… Read More
And just like that, the S&P 500 is back to hitting new all-time highs. This is happening thanks in large part to an accommodative Federal Reserve, who for the third time this year cut interest rates by 25 basis points on October 30. The benchmark federal funds rate now sits at 1.5% to 1.75%. #-ad_banner-#Also helping is the fact that the trade war with China has simmered. In fact, it looks like we may get a Phase 1 agreement soon. (Although I wouldn’t hold my breath. This is far from over.) And finally, third-quarter earnings have been better than expected — granted the bar was set pretty low. Going into earnings season, analysts believed that earnings for companies in the S&P 500 were set to decline 4% compared to the same period a year ago. It would have marked the first time the index reported three straight quarters of year-over-year earnings decline since Q4 2015 through Q2 2016. With more than 71% of the companies in the S&P 500 reporting actual results, 76% have reported a positive earnings surprise. As it sits now, the earnings decline is -2.7%. That’s not only better than the -4% that was expected, but it’s… Read More