While earnings declined year over year in the third quarter, results still exceeded expectations. Tariffs, ongoing policy uncertainty, and slower global growth have led to this earnings lull, but we remain optimistic that earnings growth bottomed last quarter and is...
COMPASS CHANGES Downgraded master limited partnerships (MLP) from neutral to negative/neutral. INVESTMENT TAKEAWAYS Our preliminary S&P 500 Index year-end 2020 fair value target near 3,200 is based on a price-to-earnings (P/E) ratio slightly above 18 and our 2020...
Why would we write a report about recession with the S&P 500 at record highs? Consider it a check-up. Just because you feel good doesn’t mean you skip your annual physical at the doctor. We check in on some of our favorite leading indicators to see if any cracks...
ECONOMY: OCTOBER DATA SHOWS A SLOWING BUT GROWING ECONOMY October economic data pointed to a slowing—but still growing—U.S. economy. The Conference Board’s Leading Economic Index (LEI) rose 0.4% in September, its slowest pace of growth since 2016. However, the LEI is...
Consumer spending has powered the U.S. economy this year as businesses curb investments, waiting for trade and geopolitical uncertainty to fade. We expect that growth will likely slow next year as companies continue to sit out this part of the cycle; however, we...
