It’s early in the US earnings season, and it’s likely tis the season for earnings beats and upward revisions. From my MoneySense weekly, “With less than 10% of the S&P 500 having reported, results are strong and have boosted the blended consensus for first quarter year-over-year earnings growth to nearly 31% from 25%.” That’s more fuel for the fire for robust economic growth, more gains for stocks and reflation. We’ve got pumped up earnings on Weekend Reads.
This week when I made sense of the markets for MoneySense I looked at a wonderful market commentary post from Liz Sonders of Charles Schwab. That is a must read. Also in that post, we look to market history to take an ‘educated guess’ at how long the current bull market might last.
I also pointed to Jonathan Chevreau’s overview on the Canadian budget. It’s Spendapalooza 2001. 🙂 While there were some minor tax increases, Jon thinks we’re just getting warmed up on the tax front. Jon’s post includes many expert opinions (and links) from across the country.
Don’t forget to follow me, and Jon on Twitter. There is always a robust and spirited exchange in progress with many from the investing and personal finance community.
Here’s a good example. Yesterday I asked some friends and experts – if you are not hedging against the free spending government and money printing central banks, are you long MMT – Modern Monetary Theory?
Public debt has no fiscal cost? I will not go long fiscal recklessness.
Larry Berman offered “It’s a debt trap”.
The Motherhood penalty.
Here’s a very good and thoughtful post on GenYMoney on fighting back against the Motherhood Penalty.
And we’re travelling with kids (as a single parent) on the MapleMoney Show podcast.
On My Own Advisor Mark looks at saving too much for retirement. That’s not something I have to be concerned with. We’ll be making every penny work as hard (and for as long) as possible.
To be fair and balanced (ha), let’s give some digital ink for the bitcoin doubters. On Findependence Hub, the case for caution with cyrptocurrencies.
In this podcast, Mike The Dividend Guy explains how he compares two dividend stocks.
Rob at Passive Canadian Income was considering sitting on his cash, but he’s decided (smartly I think) to put that cash to work. When we are accumulating, put that money to work as soon as possible and take advantage of any compounding.
And right on cue, The Sunday Investor newsletter takes a look at that question – can you time market corrections? In the post we see an evaluation that looks at holding cash and waiting for market drops, or the process of ‘invest ’em when you got ’em’.
You may not be surprised as to what is the ‘winning’ approach.
Banker On Wheels has updated his terrific post on gold in the portfolio. There’s more than one or two reasons to hold gold in your portfolio. I am happy to hold gold ‘stuff’ and other commodities and real assets.
And of course, for me, investing in bitcoin is a no-brainer.
On lowestrates.ca we’re saving money by bundling our home and auto insurance.
Checking in with Mr. Rosenberg.
On Cut The Crap Investing I looked at (OK listened to) a fascinating podcast featuring our favourite Canadian economist – David Rosenberg.
Mr. Rosenberg suggests that inflation will be transitory and we will then return to low growth, low inflation and low interest rates. The massive and growing debt mountain is a brake on growth. We’ve seen this play out before. He offers some wonderful commentary, examples and investment direction. He’s so against the grain, he even likes bonds.
But on that growth note, Mr. Rosenberg feels that big tech will continue to shine. That’s where they keep the growth. I’ll add that we simply want to own that growth at the right price. There is no denying that US markets are very expensive.
Also on the economic front and checking in with John Mauldin, stumbling to scarcity. There will be hotspots for inflation. We are experiencing that already with lumber and more.
That means we must juggle two seemingly incompatible outlooks: We don’t need to fear generalized inflation, but localized inflation could be a significant problem just ahead. With some prices rising while others hold steady or even fall, there may be little change in the broad CPI and PCE benchmarks. You may not feel it personally, depending on your location, business, and so on. But it will be there.
Yes inflation is on the way. Perhaps it will be transitory but with very many hot spots. This may turn out to be THE story of 2021.
Thanks for reading pumped up earnings on Weekend Reads. We’ll see you in the comment section. Don’t forget to follow this blog. It’s free.
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