YWR: 10 More Bullish Charts
Disclosure: These are personal views and market commentary, not investment advice or recommendations.
Earlier this month I put out 15 Bullish Charts.
I thought I’d follow up with 10 more.
The biggest trader in the market is about to start buying again (October 25th). Companies are coming out of the earnings blackout period and buybacks recommence.
Earnings are still growing. Time steadily marches on towards the S&P 500 2024 EPS estimate of $240/share, which so far has not been revised down.
Negativity around China is starting to improve. Yes, we’ve been here before (reopening optimism), but China seems to be stabilizing.
Good interview on CNBC regarding China.
Private equity firms have $2.4 trillion in dry powder which needs to be invested. This is indirectly positive for public markets too. If public companies want to sell off assets, or minority stakes in subsidiaries there is a long line of buyers. It’s supportive of public market value creation.
Everyone is terrified about the crash in the financial sector, but so far Q3 2023 earnings reports have been better than expected. Financials are leading in terms of positive surprises.
"This is a persistent story ... you can never bet against the U.S. consumer, and this is evidence of it," said Thomas Hayes, chairman at Great Hill Capital.
"People continue to underestimate the strength of the economy, they continue to underestimate the strength of the consumer and there's nowhere better to reflect that than in bank earnings which have just been off the charts," Hayes added