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The ‘7 Most Important Factors’ For Stocks Into Year-End
Stop me if you've heard this before: This time of year can be kind to equities.
Stocks were still in melt-up mode midway through the first week of December, and as Goldman's Scott Rubner reminded investors, history suggests the rally may have further to run.
"Cyber Monday deals keep getting extended and the US equity market rally is no different," Rubner wrote, in his latest. US shares are well on their way to notching five-dozen all-time highs in 2024.
As the figure shows, the "January Eff
Thanks, once again, for posting this.
If any readers still cling to the quaint old belief that earnings and profit margins matter, contrast the flows mentioned above by our Dear Leader with what US companies spoke of in the Fed’s beige book released yesterday:
“Prices rose only at a modest pace across Federal Reserve Districts. Both consumer-oriented and business-oriented contacts reported greater difficulty passing costs on to customers. Input prices were said to be rising faster than selling prices for most businesses, resulting in declining profit margins. Although input prices rose generally, contacts in several Districts noted declines in certain raw materials and non-labor costs. In contrast, rising insurance prices were again reported widely as significant costs pressures for many businesses. Contacts indicated they expect the current pace of price growth to persist, but businesses in several Districts indicated tariffs pose a significant upside risk to inflation.”
Mmmm… good reasons to lever up further and push valuations up even higher! Wave ’em in!