Portfolio Compass | September 19, 2018

COMPASS CHANGES No changes. INVESTMENT TAKEAWAYS We expect double-digit S&P 500 returns in 2018 (including dividends), driven by earnings growth potentially in the mid-to-high teens in 2018 thanks to a combination of steady economic growth, better corporate...

Energy, Financials, and Technology to be Key Q1 Earnings Drivers

– We believe growth will be broad-based in the first quarter, though earnings gains are expected to be particularl strong in the energy, financials, and technology sectors. – Based on consensus estimates, we could see positive earnings growth in all 11 sectors. Click...

Midterm Years Tend to See Larger Pullbacks

– During midterm years, the S&P 500 Index has gained only 0.1% on average between May and October, the worst out of the four-year presidential cycle. – However, that pattern may not hold this year, as the past few years the May through October period stocks have...

Fed Changes Language as Policy Rate Converges on Neutral

– The projected longer-run neutral policy rate and the current rate have been converging from both directions. – At some point, probably in the next year, they’ll be close enough for the Fed to stop calling its policy stance accommodative. Click here to download a PDF...