The Long Term Investor

EARNINGS are still coming in nicely. Although no one will say much about them. Everyone would rather talk about China and obscure bond rating firms and other BALONEY. We are in the REALITY SHOW era of investing news and commentary.

Inside Q2 S&P 500 Earnings

https://www.fisherinvestments.com/en-us/insights/market-commentary/inside-q2-sp-500-earnings

(BOLD is my opinion OR what I consider important content)

"Why negative earnings haven’t stopped stocks.

At Q2’s close, most analysts expected earnings and sales to fall, with many presuming this posed a reality check for stocks. But with nearly all S&P 500 companies reporting, a couple things seem worth noting: First, just a few sectors are responsible for the S&P 500’s year-over-year earnings decline. Second, revenues bucked expectations and continued rising overall. This doesn’t say anything about Q3 or beyond, but in our view, it shows reality is better than most anticipated.

With 460 S&P 500 companies reporting through today, blended Q2 earnings (combining actual results and remaining estimates) fell -5.0% y/y, while blended sales rose 0.7%—both above quarter-end expectations of -7.0% and -0.4%, respectively. Although a majority of companies typically top earnings estimates, Q2’s 80% beating expectations so far exceeds the 1-, 5- and 10-year averages.

As Exhibit 1 shows, even as earnings declined the last few quarters, sales didn’t, a prominent feature of this cycle. The three sequential year-over-year earnings drops through Q2 have many calling this stretch an “earnings recession.” Some are comparing this to the five-quarter earnings recession that ended in Q2 2016, which—like this one—didn’t come with a broader economic recession (as of yet). That earnings downturn then was Energy-driven, too (more on this later). Though stocks never entered into a bear market then, they did experience rough sledding from mid-2015 to early-2016. Notably, they troughed in February 2016 before earnings did in Q4, anticipating a profit rebound. We see stocks’ October trough this time similarly.

Exhibit 1: Earnings Dipped, but Sales at All-Time Highs




Source: FactSet, as of 8/11/2023.

Bolstering this optimism, in our view: Sales never stalled like they did in 2015 – 2016. Typically during recessions, revenues drop as this more directly reflects economic activity than profits, which can reflect everything from inflation to cost cuts to tax changes and more. This doesn’t tell you much about the future, but it can help explain why stocks moved on quickly from earlier recession fear.

Reality also seems better than headline results imply, as the Energy and Materials sectors skew Q2 earnings lower. These two sectors’ profits shrank by around a half and a third, respectively. (Exhibit 2) But this isn’t surprising with commodity prices down big from last year, as Energy and Materials firms’ profits tend to be more price-sensitive than production-volume sensitive. For Energy, as FactSet noted: “Lower year-over-year oil prices are contributing to the year-over-year decrease in earnings for this sector, as the average price of oil in Q2 2023 ($73.56) was 32% below the average price for oil in Q2 2022 ($108.52).”[ii] Energy’s earnings decline detracted -6.7 percentage points and Materials’ -1.2. Excluding Energy and Materials, Q2 earnings rose 2.9% y/y—not particularly great, but far better than what surface-level coverage we see suggests.

Exhibit 2: Energy and Materials Skewing Earnings Lower




Source: FactSet, as of 8/11/2023.

Now, almost halfway through Q3, all this is rather backward looking for stocks, which are pricing in earnings conditions over the next 3 to 30 months. On that front, analysts are penciling in a recovery with earnings growth expected to accelerate in the second half and into next year. We think the current bull market reflects an improving outlook. In our view, last year’s bear market pre-priced the current string of negative earning quarters, but since last fall, stocks have been looking forward to better times ahead."

MY COMMENT

EARNINGS are strong and the future looks very bright. Ignore all the negative day to day stuff. It is simply DRAMA to look for clicks.

As stated above we are at 80% BEATS this time around.....and the beats are still happening every day. this EXCEEDS the one year....five year....and ten year averages......something you will NEVER see in the media.

Stay true to yourself and trust what you know is true........the force is strong with the current markets.

 

Here is a little comment on the target earnings that are all the rage today.

Target slashes profit outlook on student loan repayment fears and economic malaise

https://finance.yahoo.com/news/target-earnings-103038997.html

MY COMMENT

For this company to warn based on the "stuff" below is simply DELUSIONAL.

"In its second quarter earnings report, the discounter slashed its full-year profit outlook on Tuesday, warning that general economic malaise, rising interest rates, and uncertainty from the restart of student loan repayments in a few weeks may continue to take their collective toll."

I dont own this company and dont follow them much......but this warning is simply out of touch with reality.

NO....we are definately NOT seeing general economic malaise. What planet are these people living on. The start of student loan repayments? Ridiculous.

In my view this is management stupidity......and....a disconnect from reality. Very strange stuff from this company. If I was a shareholder I would not like it at all.

 

I am hoping that this happens and kicks off a powerful rally in this little bull market.

Nvidia's upcoming earnings could swing the whole stock market higher as Wall Street's AI frenzy continues

https://finance.yahoo.com/news/nvidias-upcoming-earnings-could-swing-003843306.html

(BOLD is my opinion OR what I consider important content)

• "Nividia reports earnings next week, and the chipmaker's results alone could swing the stock market.
  
• That's according to Deepwater's Gene Munster, who cited Wall Street's frenzy over artificial intelligence.
  
• "All eyes are on their data center number," he told CNBC.
  

Nvidia's earnings report next week could swing the overall stock market higher as Wall Street continues to focus on growth in artificial intelligence technology, according to Deepwater Asset Management's Gene Munster.

The chipmaker, which supplies processors that are key to AI development, will release second-quarter results after the close on August 23.

"We need to think a lot about Nvidia, because as Nvidia goes, so goes AI and so goes the Nasdaq," Munster told CNBC.

Shares were up 1.9% on Tuesday, bucking a broader stock market decline, and have soared more than 200% year to date. The Nasdaq has gained 30% this year, led by artificial intelligence stocks like Nvidia.

"All eyes are on their data center number," Munster added, noting that Wall Street's estimate for Nvidia's revenue from that segment is $8 billion. "If they exceed that, that's going to send the broader market higher, the broader Nasdaq higher. If they come in line, that's going to be a disappointment."

He agreed with a Morgan Stanley note Monday that predicted Nvidia will beat quarterly forecasts and raise guidance.

Munster also pointed out that Nvidia's CFO spoke at a conference in late June, just before management entered a quiet period leading up to the earnings report.

During the event, Nvidia highlighted strong demand worldwide and dismissed concerns about the effect of US-China trade restrictions, according to Munster.

"That's a pretty powerful comment going into the quiet period, and I think ultimately they are going to deliver on that," he said.

To put Nvidia's estimated data center revenue of $8 billion in the second quarter into more context, that would be up more than 110% from a year ago, he noted.

Meanwhile, Microsoft posted an overall fiscal fourth-quarter revenue gain of 10% in constant currency and a 17% gain in its cloud business.

"This is apples and oranges when it comes to leadership in AI," Munster said."

MY COMMENT

The greatest danger for NVDA is that earnings will be great but not enough for the HUGE expectations. What everyone thinks ifs gong to happen may simply be impossible to match.

We will know in a few days. REGARDLESS of the reaction to the ACTUAL earnings.....this company is looking at an extremely bright future.

 

The market today.

Dow rises more than 100 points as investors anticipate Fed update

https://www.cnbc.com/2023/08/15/stock-market-today-live-updates.html

(BOLD is my opinion OR what I consider important content)

"The Dow Jones Industrial Average traded higher Wednesday as traders awaited the release of the minutes from the Federal Reserve’s July meeting. Wall Street was coming off a losing session that marked the latest leg down in an August slump.

The Dow Jones Industrial Average gained 105 points, or 0.3%. The S&P 500 traded near the flatline, while the Nasdaq Composite declined 0.1%.

The Fed is slated post the minutes from its July meeting at 2 p.m. ET. Back then, the central bank raised rates to their highest levels in more than 22 years.

Shares of Travelers, Caterpillar and oil giant Chevron
led the Dow’s gains Wednesday. The three companies were up more than 1% for the day.

Energy shares rebounded Wednesday after declining more than 2% Wednesday. The Energy Select Sector SPDR Fund
gained nearly 0.9%. Marathon Oil, Phillips 66 and APA
led the sector gains.

Meanwhile, the backend of the corporate earnings season rolled on. Target shares popped close to 4.8% even after the retailer cut its full-year outlook. Insurance company Progressive jumped 9%, also on the back of its earnings report.

The moves follow a losing session on Wall Street, with all three of the major indexes finishing more than 1% lower on Tuesday. With the losses, the Dow snapped a three-day winning streak. Meanwhile, the S&P 500
ended the session below its 50-day moving average, which could signal a downturn ahead.

Financial stocks including JPMorgan Chase , Wells Fargo and Bank of America
slid after Fitch warned it may be forced to downgrade the credit ratings of dozens of banks. It comes as the latest challenges to the sector, following Moody’s decision last week to downgrade the ratings of 10 banks while putting other institutions on a watchlist.

Additionally, economic news out of China weighed on investor sentiment. Retail sales and industrial production both grew less than economists expected, according to data released Tuesday. The country’s central bank also issued an interest rate cut."

MY COMMENT

We continue with a week where NOTHING is really happening. There is NOTHING negative for the markets at the moment. BUT......for ridiculous reasons.....the markets are caught up in irrelevant news items.

ALL of the big story items......that are not covered much or often......are STRONGLY POSITIVE. The economy, the lack of recession, the end of the FED cuts, great earnings above the historic averages.......etc, etc, etc......are ALL extremely positive.

This is the SOAP OPERA......REALITY SHOW....day to day market coverage. The short term has degenerated down to a complete lack of substance. I expect it will continue to get worse over time. Basically the day to day markets are now a JOKE. that leaves investors with only one course of action.....invest for the long term and hope that the day to day insanity does not infect the longer term market action.

 

This is good news.

iPhone 15 production begins in India as Apple aims to diversify from China: Report

https://www.cnbc.com/2023/08/16/apple-begins-iphone-15-production-in-india-report-says.html

"Key Points

• An Apple supplier is beginning production of the iPhone 15 in India as the company moves forward with its effort to diversify its manufacturing from China, Bloomberg reported Wednesday.
• Apple has been aiming to diversify its supply chain as the dynamic between the U.S. and China continues to grow tense.
• Apple typically announces its new lineup of iPhones at its annual event in September."

AND

"Apple has more recently ramped up iPhone production in India, assembling more than $7 billion worth there in the last fiscal year, Bloomberg earlier reported. The outlet said in April that Apple produces nearly 7% of its iPhones in India, citing sources. Prior to that, iPhone assembly in India lagged China by six to nine months, Bloomberg reported, but that gap has significantly closed."

MY COMMENT

About time.

 

Agree Smokie.......the young silent majority.

 

I am hanging out on the RED side of the market today. I have five stocks UP out of nine......mostly non-tech......HON, AAPL, COST, NKE, annd HD. They re keeping my loss down to very mild so far today. It appears to be a low volume and not too exciting of a day all the way around.

 

Here are the FED minutes......hindsight drama.

Fed officials see ‘upside risks’ to inflation possibly leading to more rate hikes, minutes show

https://www.cnbc.com/2023/08/16/fed-meeting-minutes-signal-coming-rate-moves.html

(BOLD is my opinion OR what I consider important content)

"Federal Reserve officials expressed concern at their most recent meeting about the pace of inflation and said more rate hikes could be necessary in the future unless conditions change, minutes released Wednesday from the session indicated.

That discussion during a two-day July meeting resulted in a quarter percentage point rate hike that markets generally expect to be the last one of this cycle.

However, discussions showed that most members worry that the inflation fight is far from over and could require additional tightening action from the rate-setting Federal Open Market Committee.

“With inflation still well above the Committee’s longer-run goal and the labor market remaining tight, most participants continued to see significant upside risks to inflation, which could require further tightening of monetary policy,” the meeting summary stated.

That latest increase brought the Fed’s key borrowing level, known as the federal funds rate, to a range targeted between 5.25%-5%, the highest level in more than 22 years.

While some members have said since the meeting that they think the further rate hikes could be unnecessary, the minutes suggested caution. Officials noted pressure from a number of variables and stressed that future decisions will be based on incoming data.

“In discussing the policy outlook, participants continued to judge that it was critical that the stance of monetary policy be sufficiently restrictive to return inflation to the Committee’s 2 percent objective over time,” the document said.

Lots of uncertainty

Indeed, the minutes suggested considerable misgivings over the future direction of policy.

While there was agreement that inflation is “unacceptably high,” there also was indication “that a number of tentative signs that inflation pressures could be abating.”

“Almost all” the meeting participants, which includes nonvoting members, were in favor of the rate increase. However, those opposed said they thought the committee could skip a hike and watch how previous increases are impacting economic conditions.

“Participants generally noted a high degree of uncertainty regarding the cumulative effects on the economy of past monetary policy tightening,” the minutes said.

The minutes noted that the economy was expected to slow and unemployment likely will rise somewhat. However, staff economists retracted an earlier forecast that troubles in the banking industry could lead to a mild recession this year.

Real estate concern

But there was concern over problems with commercial real estate.

Specifically, officials cited “risks associated with a potential sharp decline in CRE valuations that could adversely affect some banks and other financial institutions, such as insurance companies, that are heavily exposed to CRE. Several participants noted the susceptibility of some nonbank financial institutions” such as money market funds and the like.

For the future of policy, members emphasized two-sided risks of loosening policy too quickly and risking higher inflation against tightening too much and sending the economy into contraction.

Recent data shows that while inflation is still a good distance from the central bank’s 2% target, it has made marked progress since peaking above 9% in June 2022.

For instance, the consumer price index, a widely followed measure of goods and services costs, ran at a 3.2% 12-month rate in July. The Fed’s favorite measure, the personal consumption expenditures price index excluding food and energy, stood at 4.1% in June.

However, policymakers worry that declaring victory too soon could repeat critical mistakes of the past. In the 1970s, central bankers raised rates to combat double-digit inflation, but backed off quickly when prices showed tentative signs of backing off.

Despite the intent of the hikes to slow down the economy, they’ve had seemingly little effect on overall growth.

GDP gains have averaged above 2% in the first half of 2023, with the economy on pace to rise another 5.8% in the third quarter, according to updated projections from the Atlanta Fed.

At the same time, employment growth has slowed some but still remains robust. The unemployment rate was at 3.5% in July, hovering around its lowest level since the late 1960s. Job openings have come in some from record levels but still far outnumber the pool of available workers.

Some Fed officials of late have indicated that while rate cuts are unlikely this year, increases could be over. Regional Presidents John Williams of New York and Patrick Harker of Philadelphia, for instance, both said last week they could see a pathway to holding the line here. Market pricing is strongly pointing to no additional hikes, with less than a 40% chance of another increase priced in before the end of the year, according to CME Group data."

MY COMMENT

Unfortunately these FED people dont have a clue what is going on with the economy. They dont know any more than anyone on this board. Perhaps even less.

It is all seat of the pants mumbo-jumbo. This obsession with the FED minutes is another example of the ridiculous......pure hindsight analysis that has no purpose going forward.

At this point the FED is just OLD NEWS.......they can do whatever they wish......who cares.

 

I ended the day in the RED. Only two stocks out of nine were UP today.....HD and COST. I did manage to get in a beat on the SP500 of 0.13%. Better than nothing and going forward hopefully these little beats on the SP500 will add up to money in the bank as the bull market progresses.

HUMP DAY is over......if we keep going as we have been so far this week....it will be another negative week at least for the SP500.

 

WOW......too bad we are in economic MALAISE........NOT.

Walmart earnings smash expectations after weaker quarter from Target
Americans turned to the retail giant for groceries and to shop online.

https://finance.yahoo.com/news/walmart-earnings-113054192.html

MY COMMENT

A good strong earnings BEAT. NO....the consumer is not pulling back.....they are doing what consumers do.....shopping based on price.

This should be the driving factor in the markets today.......but.....probably no. The markets will focus on the Ten Year yield.......or....how many angels can dance on the head of a pin. Or....some other opaque and obscure data that is actually meaningless to business.

At least what we are seeing is a very good indicator that this bull market can run for a long time. It is disrespected and climbing a massive wall of worry.

 

Not that the short term day to day matters......but.....here is the market open today.

S&P 500 rises slightly as Wall Street tries to recover from back-to-back losses

https://www.cnbc.com/2023/08/16/stock-market-today-live-updates.html

(BOLD is my opinion OR what I consider important content)

"Stocks nudged higher Thursday as investors digested the latest round of earnings and economic data, while assessing the outlook for Federal Reserve monetary policy.

The S&P 500 gained 0.2%, while the Dow Jones Industrial Average advanced 74 points, or 0.2%. The Nasdaq Composite
traded up less than 0.1%.

Computer networking company Cisco Systems gained more than 4% on a better-than-expected quarterly earnings report. Meanwhile, Walmart inched lower trading after even after reporting an earnings and revenue beat in the fiscal second quarter. The company also raised its full-year guidance and underscored strength in grocery and online sales.

Ross Stores and Applied Materials are scheduled to report quarterly results after the bell Thursday.

Thursday’s moves follow a second consecutive losing session for the three major averages. On Wednesday, the S&P 500
dropped 0.76%, while the Dow shed 0.52%. The Nasdaq Composite
slipped 1.15%.

Markets reflected investors’ concerns after officials said in the central bank’s July meeting minutes that additional tightening may be necessary to bring down inflation. The federal funds rate is currently in a range between 5.25% to 5.5%.

The 10-year U.S. Treasury yield reached its highest point since October 2022 on Thursday. It was last trading just below the high at 4.282%.

Stocks have been suffering through a rocky August, with the major averages headed toward another losing week and in negative territory for the month.

“The market and the sectors are losing their momentum,” said Sam Stovall, chief investment strategist at CFRA Research. “Because it’s losing its momentum, the valuations are becoming less and less extreme, and I think a lot of investors continue to look to the fourth quarter as to the end of this earnings recession.”

Jobless claims for the week ended Aug. 12 fell from the previous period and came in slightly under the Dow Jones estimate. The Philadelphia Federal Reserve also reported an uptick in its manufacturing index in August.

Years like 2023 historically result in the weak August performance, data shows

The S&P 500 has seen its worst August performances in years when the broad index has rallied through the end of July, according to Bespoke Investment Group data.

In years when the broad index has gained at least 10% heading into August, it has pulled back an average of 0.69% in the month, the firm’s data shows.

That marks a worst performance than when sorting historical performance differently. The index has added 0.14% in the month when it gained between 0% and 10% year to date as of the end of July. And it’s climbed 0.78% on average in years when its down on the year heading into August.

With just over half the trading month finished in 2023, the S&P 500 has lost 4% since August began. Even with the pull back, the index is still up nearly 15% this year."

MY COMMENT

I find it amazing that the constant day to day focus in the financial media is on the.......FED. At the same time....in my day to day life......I dont hear anyone talking about or being concerned in the slightest about the FED or rates. The vast public simply does not care and does not have the slightest interest.

At the same time....the HUGE silent majority of investors are doing NOTHING. Well not nothing....they are adding to their accounts monthly and yearly in their 401K and other investments just like they always do. There is a HUGE divide between the general financial media and their daily reporting and what the average investor cares or thinks about.

That is because the average investor is NOT a short term trader.

 

https://www.macrotrends.net/2016/10-year-treasury-bond-rate-yield-chart

The abovve link will take you to a 54 year chart of Ten Year Treasury yields. If you are concerned about the......high rates.....on ten year Treasuries I invite you to click on this link. You will NEVER see this information talked about in the daily financial and investing blather.

BUT.....the chart shows that in historic terms the current rates are EXTREMELY LOW........not high......as is constantly inferred in the daily commentary.

 

ANOTHER day.....of ZERO economic and market news.

Earnings continue to boom at just over 80% BEATS. The economy and consumers are still active and doing well. Wages are UP for most people in the USA.

By all accounts and by historic norms......things are going very nicely right now for the markets. IGNORE the BS and the drama mongers. Simply plug away.....step by step.....bit by bit.....for the long term. Invest in the big Indexes or the cream of the crop companies here in the USA. Be rational and realistic. Reinvest all capital gains and dividends. AND.....let time and compounding simply do their thing.

That is what I am doing and have been doing for my entire investing lifetime. AND.....

I continue to be fully invested for the long term as usual.

 

I believe THIS is the TRUTH.

Is good economic news really all that surprising?

https://www.tker.co/p/july-retail-sales-good-economic-news

(BOLD is my opinion OR what I consider important content)


"

(Source: @USCensusBureau)
People continue to be blindsided by the resilience in personal consumption growth.

According to Census Bureau data, retail sales in July increased by 0.7% to $696.4 billion. As many news headlines show, this pace exceeded many economists’ forecasts. (See here, here, here, here, here, and here.)

“The media was flooded with stories the past 18 months that ‘consumers are cracking under inflation,’” said Robert Burgess, executive editor of Bloomberg Opinion. “It never happened.”

To be clear, TKer isn’t in the business of making predictions on short-term moves in the market or the economy.

Rather, TKer is here to provide context so we can all get a better understanding of what’s driving the economy today, which may help us understand what will drive the economy in the future.

Almost every month over the past two years, measures of personal consumption like retail sales have climbed to new record highs. And almost every time, the context has been the same: Job gains and strong consumer finances bolstered by excess savings are fueling spending growth.

Recent job openings data suggest we’re likely to see further gains. And recent household balance sheet data suggest consumer finances remain in pretty strong shape.

Nothing’s certain. But maybe we should be optimistic about the consumer outlook, since the forces that have been driving spending growth for the past two years continue to suggest spending will hold up.

With all that in mind, I think it’s worth remembering that you should beware of what appears to be a lot of alarming business news.

Most actual ‘news’ about the economy and the stock market isn’t bad

It’s not just the past two years that have been good in the economy. And similarly, it’s not just the past year that has been good for stocks.

Ritholtz Wealth Management’s Ben Carlson recently observed that since 1929, the economy has been in growth mode 84% of the time.

eToro’s Callie Cox noted that since 1950, the stock market has been in a bull market 83% of the time.

As we often say here at TKer, the stock market usually goes up. That’s because earnings usually go up, a phenomenon supported by the fact that economic activity usually goes up.

These facts may seem in conflict with the way information is covered in the news.

Ross Mayfield, an investment strategy analyst at Baird, shared some interesting insight on LinkedIn. According to a recent study of article headlines in 47 news media outlets, sentiment has gradually gone from positive to increasingly negative over the past two decades.


News headlines have generally been negative. (Source: Rozado et al. via Ross Mayfield)
“It’s not that ‘news’ is inherently bad, and in fact, most programs do a great job informing and educating,” Mayfield wrote. “I’m not anti-media. But over time, and especially in the last decade or so, news has shifted in a way that gives outsized attention to the fear-stoking and anger-provoking.”

The San Francisco Fed maintains a sentiment index that tracks “economics-related news articles from 24 major U.S. newspapers.” It’s spent most of the past two years skewing negatively.


Economic news has been negative. (Source: San Francisco Fed)
The University of Michigan has several “news heard” indexes based on the responses of their monthly surveys of consumers. While the “News Heard of Recent Changes in Business Conditions“ index has improved in recent months, it remains pretty dismal relative to the historical averages.


Consumers say business news, while improving, has been pretty bad. (Source: University of Michigan)
Of course, everyone’s experience with news is a bit different.

For example, if you’ve been following TKer for a while, then you might have a view of the economy that’s more in line with what the encouraging data has been confirming month after month.

But if you feel that the economic and market headlines seem overly negative, then it might be time to reconsider how you’re getting your information.

“In the end, the competition for our attention has never been greater, and it’s not going to ease anytime soon,” Mayfield wrote. “As we move forward, one of the most important skills an investor can have will be separating news from noise and ignoring more sensational headlines – especially when it comes to your money.“"

MY COMMENT

The blog article above is TOTALLY correct. the markets have not changed. The positive reasons to invest in stocks and funds have not changed. What has changed is the media style that is now the NORM in the world.

The REAL DANGER for the markets and investors is that over time as all of us older investors disappear........the negativity and fear mongering will ENGULF the markets and actually change investing results to the negative. Over time reality will simply become the constant negative story-line.....because that constant negativity will change investor behavior and psychology.

I separated the content below from the blog article above.....BUT......I included it on here since I do TOTALLY AGREE with the sentiments.


"Why I started TKer

For over a decade, I’ve been hearing from people who don’t understand how the economy and the stock market can be doing so well despite what seems like a constant deluge of worrisome headlines.

As I argued in the December 1, 2022, TKer: “This is an issue with news, a business that’s incentivized to address its audience’s interests and not necessarily its needs.“

Troubling developments, while factually accurate, will often get outsized news coverage despite reflecting a relatively small part of the economy or the markets.

This happens because our eyes and attention tend to gravitate more toward bad news than good news. And we’ll talk about it, which gets bad news trending on social media. And those who are just hearing about some bad news will Google it, and suddenly it’s trending in search data. Major news organizations have people monitoring what’s trending on social media and in search, and that information gets right back to the editorial leaders who assign stories to reporters.

To be clear, I’m a fan of and subscriber to most of the major business news outlets. They break lots of important news, and they advance lots of great information. I just don’t think everything they cover actually matters. And oftentimes, I don’t care for how they frame certain stories.

TKer is only interested in the news, data, and insights that inform the longer-term themes that matter to long-term investors in the stock market.

And it is usually the case that TKer’s newsletters have a positive slant. This is not because TKer is biased. Rather, it’s because the news and data tends to actually be positive when covered fairly.

History shows things usually work out positively, and there’s little reason to believe this won’t continue to be the case in the long-run future."

MY COMMENT

I dont know this writer.....but....his description of his view above is RIGHT ON. Unfortunately....as time goes by and people are ground down by the constant negative slant......this view will be LOST. It will become the minority and like many things....even though true.....will be derided as moronic and idiotic.

-

 

The most DISRESPECTED area of the markets right now.......the BIG CAP........NASDAQ and SP500......monster companies.

I am NOT a cheerleader for the BIG SEVEN companies.......BUT:

.......these are the most successful and most owned businesses in the world. These companies have hundreds of BILLIONS of dollars siting and waiting to be used to bolster their business needs and desires. They have historic RECORD market cap. They continue to put up big earnings numbers and make it look effortless. Even when their earnings are BLAH.....they are HUGE.

We take these companies for granted......they are owned by anyone that happens to invest in any of the big Indexes. These are the greatest companies in history. They are ALL based here in the USA. They are PROVEN....having been in business for 25......30.....40....years.