Why The Stock Market Keeps Climbing
By Nicholas A. Flemming, CFA, CPA, M.Sc, FMA — Senior Portfolio Manager & Wealth Advisor, Flemming Private Wealth (RBC Dominion Securities). Shared with permission.
The current bull market (finance speak for a rising market) has been labeled “the most hated bull market in history” because nobody wants to believe it’s real.
Well, I’m happy to tell you that it is real, and I’d like to show you why, in a few easy-to-understand slides courtesy of Fidelity:
Comment: Profitability is everything when it comes to market performance. If investors expect healthy corporate profitability, you’re probably in a good place, and if the growth rate is accelerating, you’re in an even better place. That’s where we are today.
Comment: For all the talk about the Strait of Hormuz perhaps this chart should have been talked about just a little more!
Comment: Any reading above 50 indicates expansion in the manufacturing sector, which is very positive.
Comment: For all the talk about AI destroying the job market we’re not seeing it yet. In fact, we just hired our fourth Associate here at Flemming Private Wealth who I’m looking forward to introducing under separate cover.
Finally, perhaps next month I’ll send four concerning charts, but it’s July and we should be thinking positive (and let’s pretend we’re not watching the Canadian Dollar.)
Until next month, Happy investing, and have a wonderful summer!
