Weekly Talking Points 6/22/2016

Joel Faircloth, Aspen Wealth Strategies

Investment & Economic Talking points

  1. 98% of S&P 500 companies have reported 1Q earnings as of Friday. EPS are down 6.6% overall and are down 4% excluding energy companies.
  2. Point #1 makes the fact that the S&P 500 is up 2.42% YTD more impressive.
  3. FED did not raise rates last week, but a July hike may be on the table – However, more voting members of the FED are leaning towards no rate hike compared to just 3 months ago.
  4. Inflation does appear to be picking up as Core CPI came in at 2.2% last week. The FED target has been 2%.
  5. BREXIT – the vote for Britain to stay or leave the EU is set for Thursday. It will be close, but most experts expect a “stay” vote. A stay vote would be positive for markets; a negative vote would be bad but temporary. Depending on the magnitude of a selloff it could be an opportunity to buy stocks while they are “on sale”.
  6. Good news: The April JOLTS report (Job Openings and Labor Turnover Survey), showed US job openings near an all-time high of 5.78 million.
  7. The weak May jobs report, with only 38,000 jobs gains, may be an anomaly given #6. Jobs numbers tend to be volatile month to month and are revised many times.
About the Author
Joel Faircloth

Joel Faircloth

Website

Joel Faircloth has built his career through formal education, working for some of the top firms in the country, and by challenging convention. He brings an extensive breadth and depth of experience in the financial services industry and has worn many hats—operations, client service, compliance, trader, marketer, writer, trainer, and investment manager. Joel is a seasoned investment manager, strategist and leader. He believes in the idea that one person or a group of like-minded people can help change an industry, and this is what led him to Aspen Wealth Strategies.

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