{"id":559,"date":"2021-05-03T00:00:00","date_gmt":"2021-05-03T00:00:00","guid":{"rendered":"https:\/\/www.retirementrefined.com\/index.php\/2021\/05\/03\/profits-are-crushing-estimates\/"},"modified":"2021-05-03T00:00:00","modified_gmt":"2021-05-03T00:00:00","slug":"profits-are-crushing-estimates","status":"publish","type":"post","link":"https:\/\/www.retirementrefined.com\/profits-are-crushing-estimates","title":{"rendered":"Profits are CRUSHING estimates!"},"content":{"rendered":"

\"\"Over 80%<\/strong> of the S&P 500<\/strong> companies have crushed earnings<\/strong> estimates by an incredible 23%. <\/strong>Yes, the profit season is being compared to the 1st<\/sup> quarter of 2020, however the increases, last week by the names of Alphabet, Amazon, Apple, Microsoft and others are massive<\/strong>.\u00a0 So, you expected the market to be up last week?\u00a0 Not so!<\/p>\n

For the week the markets<\/strong> were flattish as the S&P 500 finished up .04% and most of the other major stock indexes in the United States and over the pond down under 1%.\\<\/p>\n

Bond yields rose slightly with the 10-year increasing by 7 basis points for a yield of 1.63%.<\/p>\n

This was after the Gross Domestic Product Report<\/strong> last week showing the economy grew <\/strong>by 6.4% in the 1st<\/sup> quarter<\/strong>.\u00a0 This number does get adjusted 2 more times as more data becomes available, so I won\u2019t be surprised if it\u2019s revised higher.<\/p>\n

Sell in May, Go Away?<\/em><\/strong><\/p>\n

\"\"Years ago, the thought, was to sell in May, as most traders and investors are away not paying attention, and buy again in the fall.\u00a0 Historically the winter months have been more profitable than the summer months.<\/p>\n

Well, that really has not worked well for some time<\/strong>.\u00a0 Perhaps in the recent past, technology has contributed to investors paying attention, even while enjoying themselves away from work, except last year of course.<\/p>\n

I will not be surprised if we have a decent pullback over the summer months, however not from this old adage.<\/p>\n

Investors pretty much know all of the good news.<\/strong>\u00a0 Stimulus, stimulus, stimulus, low rates, housing boom, decreasing unemployment are all built into current asset levels<\/strong> from my perspective.\u00a0 I will not be surprised if we climb several percent higher prior to a pullback. A pullback would actually be healthy for the longer-term perspective of the stock market as that could flush out some short-term speculators in favor of longer-term investor<\/p>\n

Is Warren Buffett Correct???<\/strong><\/p>\n

\"\"I can recall October 2009<\/strong>, when Warren Buffett said he just bought a ton of stocks, as they were “on sale<\/strong>.”\u00a0 He said I don\u2019t know how much lower the market will go; however, I believe the market will be significantly higher in years to come.\u00a0 Was he correct?\u00a0 Absolutely<\/strong>!<\/p>\n

Over the weekend Warren Buffett and Charles Munger discussed their annual report and fielded questions.<\/p>\n

They believe that the new group of \u201cday-traders\u201d, will end poorly<\/strong>, as he believes you make<\/strong> money in the market by purchasing good, solid companies <\/strong>(or companies you believe will<\/strong> become so),<\/strong>\u00a0and hold<\/strong> them for the long term.\u00a0 For example, he has owned Apple and Coca Cola<\/strong> for years and years.\u00a0 He called what\u2019s going on now, “casino gambling.”\u00a0 He did not speculate when the bubble would burst as it just happens when it happens.<\/p>\n

It was also suggested during the meeting, the Crypto craze<\/strong> is not going to last and will end poorly.\u00a0 It\u2019s interesting that the wisdom of one of the worlds most successful investors is in dispute with many other expert opinions.\u00a0 This issue is important, so keep a thumb on the pulse!!<\/p>\n

Tax Changes are Coming!<\/strong><\/p>\n

Even if half of President Biden\u2019s<\/strong> new infrastructure and family plans are implemented, tax rates<\/strong> will change<\/strong>.\u00a0 The information about what may actually become reality is fluid, and far from certain at this point.\u00a0 One thing for sure, we are witnessing politics work its magic.<\/p>\n

It\u2019s a little too early to make adjustments based on speculation, however we should have a clearer understanding over the next couple of months that will make revisiting client tax situations of utmost importance.<\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Over 80% of the S&P 500 companies have crushed earnings estimates by an incredible 23%. Yes, the profit season is being compared to the 1st quarter of 2020, however the increases, last week by the names of Alphabet, Amazon, Apple, Microsoft and others are massive.\u00a0 So, you expected the market to be up last week?\u00a0 […]<\/p>\n","protected":false},"author":3,"featured_media":563,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"post_statement":"","post_description":"","post_cta":"","post_button":"Read More","post_button_url":"","compliance_id":"","post_disclaimer":"","footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/posts\/559"}],"collection":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/comments?post=559"}],"version-history":[{"count":0,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/posts\/559\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/media\/563"}],"wp:attachment":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/media?parent=559"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/categories?post=559"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/tags?post=559"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}