Transcript
Hello, everybody, welcome to Tuesday. Really good day again today, the S&P 500 was up another half percent today. So we’ve had two up days in a row, which hadn’t happened since this downturn started. But again, more importantly, the pieces that we’re moving the most were the pieces that we own as our targeted indexes in our portfolios. And so that’s really exciting, very happy with that almost everything did better than the S&P 500. Today, bonds tend to sell off in these environments, you know, they were going up when the market was going down. And so you’ll see some of that here.
But very, very pleased with what’s happening so far. You know, I spent weeks here, you know, digging through all these charts, and the thing that did strike me was that it didn’t seem like there was a big rotation going on, like money was moving to a different area, outside technology, there is simply selling technology. And if that’s true, I felt like things would come back, because again, there’s nowhere to go. Interest rates are so low, and it does seem to have happened so far. But there are some real strong pieces coming out right now talking about the economy and some of the expectations.
We’re starting to see upward revisions to the analyst estimates for earnings for 2021, and 2022. If you remember from before, these were already pretty high, and seems surprisingly high, and seems like they’re working out and now they’re actually moving them up some which is a big deal. We’re expected to have a third quarter GDP of over 30%, which would be an all time record. Of course, you know, we had a really bad second quarter, but we are seeing a bounce. And there’s some news out that maybe the retail sales report will show that retail sales are back to where they were as a whole, prior to the pandemic.
So things are improving economically, this isn’t just a mirage, where the stock market is just kind of marching upwards. We’re seeing some pieces that are behind the scenes. And again, this is what the market has been telling us what’s going to happen all along. And that’s why the market is one of the leading indicators. And that’s why it’s us. So things look great. Hopefully things continue. And we start to go we kind of broke through some of our resistance that was above us today. And you know, now we just got to kind of churn our way back up, hopefully to a new all time high. So that’s what’s happening today. Let’s find out what happens tomorrow. I’ll talk to you then. Thank you.