Two the Point — A Silver Lining

In this week’s video, we delve into 2023 Q4 earnings and highlight the robust nature of the current market landscape, revealing a silver lining amid economic slowdown concerns.

Key Points:

  • Analysts have lowered Q1 EPS estimates by a modest 1.4%, less than the historical average reductions during the first month of a quarter.
  • The S&P 500 shows resilience with a 1.6% year-over-year earnings growth for Q4, indicating the second consecutive quarter of earnings growth.
  • Corporate sentiment is at near-record highs, suggesting favorable conditions for forward earnings.
  • The market presents attractive valuation opportunities beyond the “Mega 8”, especially in mid-and small-cap stocks.
  • Strong employment numbers support consumer spending, contributing to a stable economic backdrop.

 

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