Our team looks at a lot of research throughout each day. A few charts that caught our eye this week, and the way they fit the unfolding puzzle of evidence:
Dave: Q3 earnings are generally behind us and the general tone was solid
Data as of 11.18.2024
Dave: with overall growth slightly ahead of incoming expectations
Source: Strategas as of 11.18.2024
Dave: but slight downward revisions in future quarters
Source: Strategas as of 11.18.2024
Beckham: and overall, a continued push higher in the great American growth story
Brett: There is hope that economies across the globe are set for at least some growth in the next 12-24 months
Arch: but in general, foreign companies have not grown at even close to the same levels as the U.S.
Source: New Edge as of 11.14.2024
Joseph: which has led to dramatic underperformance in Europe and elsewhere
Brian: again showing that growth is the ultimate driver of long-term equity performance
Dave: Even within the U.S. itself, we see dramatic differences in the valuations rewarded to higher-growing companies
Source: Strategas as of 11.15.2024
John Luke: with profit margins and overall quality rewarded at the expense of smaller, slower-growing companies
Data as of 11.19.2024
John Luke: and the inability of those companies to secure as much low-rate debt coming out of COVID
Dave: Speaking of debt, our federal government holds a ton, and many are hopeful that the incoming administration can slow the runaway spending
Data as of 10.31.2024
JD: and while that may reduce overall growth rates, the truth is that much of the path of federal spending is locked in unless someone is willing to accept public revolt
Data as of September 2024
Dave: As much as investors slam the market as driven by a few big tech names, it’s been mostly explained by their fundamental performance
Source: Goldman Sachs as of 11.15.2024
Brad: yet active funds as a whole have found themselves frustratingly underweight the glamour names
Data as of 11.20.2024
Brad: Despite the run, a checklist of common attributes of a market top shows very few are actually in place
Source: Strategas as of 11.21.2024
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