by NelsonCorp Wealth Management | Jan 4, 2024 | Indicator Insights
The stock market tends to go up over time. But there are times when it goes up too high, too fast. When this happens, a correction tends to occur, meaning stocks drop at least 10% from a recent high. We don’t always know when a correction is about to occur. But...
by NelsonCorp Wealth Management | Dec 28, 2023 | Indicator Insights
Investors often assess a company’s earnings in two ways: by looking at its trailing earnings (the past) and its future earnings (expected). This week’s indicator looks at a combination of both to understand how they influence stock returns. At the...
by NelsonCorp Wealth Management | Dec 21, 2023 | Indicator Insights
Our nickname for this week’s indicator is the “inflation leader.” Why? Because it tends to lead the broader measures of inflation—like the Producer Price Index and the Consumer Price Index—and can therefore warn us when inflationary pressures are building. The...
by NelsonCorp Wealth Management | Dec 14, 2023 | Indicator Insights
The writer Jason Zweig once wrote that regression to the mean is the most powerful law in financial physics. By this, he meant that after a period of really good stock market returns, we can expect things to cool down, and after a rough patch, there’s a...
by NelsonCorp Wealth Management | Dec 7, 2023 | Indicator Insights
The stock market runs on cash. For this week’s featured indicator, we highlight a measure of excess cash in the banking system—called free reserves—and discuss why fluctuations in this measure can affect stock prices. But first, what exactly are free reserves?...
by NelsonCorp Wealth Management | Nov 30, 2023 | Indicator Insights
Stocks have done exceptionally well over the past month, and a major reason for this success is the recent decline in interest rates. In fact, as our featured indicator this week shows, stocks perform the best when a metric called “bond yield momentum” is...
