Quarterly Market Outlook Reports
Each Quarter, our team of portfolio managers meet to discuss the trends of the previous and upcoming quarter. We assemble the trends, the impact to our portfolios and discuss which moves are prudent for the coming weeks and months. And we deliver this analysis to you every three months.
Second Quarter, 2020
Our stocks have rebounded impressively since late March, especially our growth stocks, which are now defensive compared to dividend stocks as they are less affected by COVID-related shutdowns. As always, we are entering the upcoming earnings announcement season “locked and loaded” with fundamentally superior growth stocks that are characterized by 21.2% average annual sales growth and 79.8% average annual earnings growth. Furthermore, in the past three months,
First Quarter, 2020
Our dividend growth and conservative growth stocks have rebounded impressively in the past four weeks. As we have said repeatedly, good stocks bounce right back and that is exactly what has happened since the late March lows. We expect to continue to sell selected stocks into strength as we concentrate on the crème de la crème and anticipate holding fewer stocks in the upcoming months due to the fact that the economic recovery is anticipated to be very narrow.
Fourth Quarter, 2019
2019 was a year of great stock market performance and flat earnings. In some respects, it was the opposite of 2018 when earnings were up more than 20% while stocks were down. Yet if we take the averages for both years for both EPS growth and stock performance, the two years were pretty normal—on average. The 4th quarter of 2019 will be the last lackluster quarter for the S&P 500’s earnings. Looking forward to 2020, the S&P 500 will be having much more favorable year-over-year comparisons, so we expect positive guidance from many flagship companies.
Third Quarter, 2019
Our dividend growth and conservative growth stocks are “locked and loaded” for the upcoming third-quarter announcement season. We are exiting the seasonally weak months for small-to-mid capitalization stocks and are now on the verge of when small-to-mid capitalization stocks tend to surge from an early “January effect” and remain strong well into the New Year.
Second Quarter, 2019
Our growth stocks continue to steadily appreciate and exhibit significant relative strength compared to the S&P 500. In fact, our Large Cap Growth portfolio just posted its strongest outperformance relative to the S&P 500 and is leading all our other growth portfolios year-to-date, which are also having a good year.