I’m Keith DeGreen and this is your Investors Minute
At DeGreen Capital Management we’ve rotated heavily into U.S. equity ETFs. We’ve even added some leveraged exchange-traded funds. We expect a strong year-end for U.S. markets. Here are some more reasons why:
U.S. corporate earnings, and earnings projections, have been better than expected. In the recently-concluded earnings season, about 80% of S&P 500 companies beat earnings estimates. Most companies also projected positive earnings growth going forward, despite headwinds in China and Europe.
Ultimately, stock price appreciation is always about earnings. But some investors are intimidated by the so-called “record highs” of today’s U.S. markets.
In fact, those raw numbers have little meaning. What matters is the earnings multiple – known as the price/earnings, or P/E ratio, that investors are willing to pay – and those are still within reason.
Tomorrow, I’ll offer more reasons why we’re bullish on U.S. equities.
FEE-ONLY DeGreen Capital Management. Pioneers in low-cost exchange-traded fund investing. Irvine: 949-333-4550. Scottsdale: 480-609-9900. www.DeGreen.com. Minimum portfolio requirement $1,000,000.
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