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Financial Focus – July 12th, 2023

Financial Focus – July 12th, 2023

Tune in to this week’s Financial Focus as David Nelson delves into key topics concerning retirement and succession planning. Additionally, he examines the influence of interest rates and their effects on the current market landscape.

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Lack of Productivity

Lack of Productivity

We have seen weaker economic numbers recently. James Nelson shares the biggest implication of these numbers and what warrants particular attention.

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Keeping an Eye on Rates

Keeping an Eye on Rates

OVERVIEW   The major U.S. stock indices failed to maintain last week’s positive momentum as the S&P 500 and the NASDAQ slipped around 1%, and the Dow fell nearly 2%. The S&P 600 index of small-cap stocks also dropped about 1.4%. Most of the declines came...

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Staying on Beat

Staying on Beat

  This week’s featured chart shows that the percentage of companies in the U.S. stock market-beating earnings expectations increased significantly in the first quarter of the year, breaking a prolonged downturn that started near the end of 2021. As the middle...

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Replenished Liquidity

Replenished Liquidity

  Liquidity, or easily accessible money, is an important driver of stock market returns. A simple metric commonly used to measure liquidity is the M2 money supply, a broad measure of the money in the economy available for spending and investment. When it’s...

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Economic Bulls on Parade

Economic Bulls on Parade

OVERVIEW   The U.S. stock market had a strong outing last week. The S&P 500 surged 2.35%, the Dow gained 2.02%, and the Nasdaq increased 2.19%. Value stocks led the way, gaining 2.93%, but growth stocks weren’t too far behind, up 2.26% for the week. Small-cap...

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Equal Competition

Equal Competition

  This week’s chart features the yields of the three primary financial assets investors focus on: cash, bonds, and stocks. The green line represents the forward earnings yield for the S&P 500 (stocks), the gold line represents the yield on investment-grade...

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Prices vs. Money

Prices vs. Money

  This week’s featured indicator looks at the relative valuation of the stock market based on the money supply. The idea is that if we compare stock prices to some economic gauge—like the money supply—we can determine whether prices are competitively valued or...

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