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Announcer:
Your Money is brought to you by Nelson Corp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money. We’re joined by David Nelson, CEO of Nelson Corp Wealth Management. Nice to see you again, David.
David Nelson:
Thank you, Brandy, you too.
Brandy Auterson-Hurst:
So with the volatility we have seen in the stock market recently, what are you watching?
David Nelson:
Many things. But whenever you see volatility like this, what you’re basically looking for is a catalyst that could potentially reverse the current path and/or basically save it. And so the chart that I brought today kind of illustrates I think one of the really important items, and that is positive earnings surprises. And it’s looking at the beat rate and that’s kind of the key. In other words, are we exceeding as far as expectations as far as the S&P? This is the S&P and it’s looking at the last several years. But the most important part of it is if we look at the far right, what we see there is the last two quarters have actually had really nice beats. That’s a real positive, again, pertaining to stocks and trying to look forward as far as can this momentum continue as far as in the stock market.
Brandy Auterson-Hurst:
So how can viewers use that information?
David Nelson:
Well, I think generally speaking, the rate of the positive earnings, it’s been a pleasant, it’s been a positive, but understanding that the earnings beats, as it’s risen, sales beats have actually been dropping. So again, it’s the cautious nature as far as of us in the line of work that we’re in as far as looking at this and saying it’s probably not a time to go out there and get really aggressive. The substantial evidence that’s out there still says it’s probably a pretty good idea to play pretty cautious at this point in time.
Brandy Auterson-Hurst:
All right, David, thanks for your insight today.
David Nelson:
Thank you.
Brandy Auterson-Hurst:
If you missed any of our discussion, we’ll make it available for you on ourquadcities.com.