Market Update: February 7, 2022 Market Down While Waiting for Earnings And Inflation Reports

Tom Vaughan is a Certified Portfolio Manager and CEO of Retirement Capital Strategies. Retirement Capital Strategies is a registered investment advisor located in San Jose, California.

The opinions voiced in these presentations are for general information only and are not intended to provide specific advice or recommendations for any individual(s). The information provided herein is obtained from sources believed to be reliable, but no reservation or warranty is made as to its accuracy or completeness. Statements and opinions are subject to change without notice. Asset allocation and portfolio diversification cannot assure or guarantee better performance and cannot eliminate the risk of investment losses. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. Accordingly, you should not rely solely on the information contained in these materials in making any investment decision as the material does not take into account your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. You must make an independent decision regarding investments or strategies mentioned in this presentation. Before acting on information discussed in this presentation, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment advisor. Prospectuses, investment objectives, risks, charges and expenses of any investment product should be reviewed carefully before investing. This platform is solely for informational purposes. Advisory services are only offered to clients or prospective clients where Retirement Capital Strategies and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Tom Vaughan or Retirement Capital Strategies unless a client service agreement is in place. “Likes” are not intended to be endorsements of our firm, our advisors or our services. Please be aware that while we monitor comments and “likes” left on this page, we do not endorse or necessarily share the same opinions expressed by site users. While we appreciate your comments and feedback please be aware that any form of testimony from current or past clients about their experience with our firm is strictly forbidden under current securities laws. Please honor our request to limit your posts to industry-related educational information, comments and questions. Third-party rankings and recognitions are no guarantee of future investment success and do not ensure that a client or prospective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the advisor by any client nor are they representative of any one client’s evaluation. Investment positions mentioned in these videos may be held in some of our existing portfolios. Tom Vaughan and Retirement Capital Strategies are unaffiliated and separate from those companies whose investment positions are mentioned and is not liable for their products or services.

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Transcript:

Tom Vaughan:

Everybody welcome to Monday, the S&P 500 was down point 4%. Today, this is going to be a really busy week with a lot of earnings coming out this week, big companies like Coca Cola, and Disney and Pfizer and etc. Half of the S&P 500 companies have reported so far, the earnings have been spectacular, actually, 88% of the companies that reported so far have beaten their expectations, which is a great number altogether. Again, Wall Street is under estimating the overall power of the earnings potential for the companies that are out there right now. You know, the big headlines are the meta platforms and different companies like peloton that missed their earnings. But the reality is that most companies are actually exceeding their earnings. So we’ll see how that goes. Now, the expectations for the overall growth for the quarter for the fourth quarter of last year versus the fourth quarter of 2020 was 29.2% expected growth across these earnings that are coming out. Now, if you remember from the third quarter that made 36% growth, which was spectacular, so and 29 is still very, very good. And this would be the seventh quarter in a row where we’ve had companies greatly exceed expectations as a whole. So very good. As far as that goes, we do have the CPI number, the inflation number coming out on Thursday, that’s probably going to cause some volatility for the market.

So we’ll have to be aware of that. I think, I think inflation is going to continue to grow here, at least through March timeframe. As far as that goes, the expectation is 7.2%. So we had 7.1%. Last time they had the number come out. So you don’t have to see how that plays out. We have this big jobs number that came out on Friday. And they actually revised some of the jobs numbers from previous months to show that there were a lot more jobs created. And way more than expected, which is really kind of fascinating. So again, that kind of put some pressure on the Federal Reserve to be able to be more aggressive with the rate increases. At the same time, I think that the more jobs that we have, the more we’ll be able to ease the supply chain constraints. So I think these things are probably going to work out to be a good thing. Again, the theme is first half of the year, we’re going to have to digest all of these things and really get through this. And then the second half of the year could be quite a bit better here. So good chance for us to just kind of you know, watch for different opportunities and see what goes on as far as that goes. So that’s what happened today. I look forward to talk to you tomorrow. Thank you

Tom Vaughan is a Certified Portfolio Manager and CEO of Retirement Capital Strategies. Retirement Capital Strategies is a registered investment advisor located in San Jose, California.

The opinions voiced in these presentations are for general information only and are not intended to provide specific advice or recommendations for any individual(s). The information provided herein is obtained from sources believed to be reliable, but no reservation or warranty is made as to its accuracy or completeness. Statements and opinions are subject to change without notice. Asset allocation and portfolio diversification cannot assure or guarantee better performance and cannot eliminate the risk of investment losses. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. Accordingly, you should not rely solely on the information contained in these materials in making any investment decision as the material does not take into account your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. You must make an independent decision regarding investments or strategies mentioned in this presentation. Before acting on information discussed in this presentation, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment advisor. Prospectuses, investment objectives, risks, charges and expenses of any investment product should be reviewed carefully before investing. This platform is solely for informational purposes. Advisory services are only offered to clients or prospective clients where Retirement Capital Strategies and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Tom Vaughan or Retirement Capital Strategies unless a client service agreement is in place. “Likes” are not intended to be endorsements of our firm, our advisors or our services. Please be aware that while we monitor comments and “likes” left on this page, we do not endorse or necessarily share the same opinions expressed by site users. While we appreciate your comments and feedback please be aware that any form of testimony from current or past clients about their experience with our firm is strictly forbidden under current securities laws. Please honor our request to limit your posts to industry-related educational information, comments and questions. Third-party rankings and recognitions are no guarantee of future investment success and do not ensure that a client or prospective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the advisor by any client nor are they representative of any one client’s evaluation. Investment positions mentioned in these videos may be held in some of our existing portfolios. Tom Vaughan and Retirement Capital Strategies are unaffiliated and separate from those companies whose investment positions are mentioned and is not liable for their products or services.

By participating in any of these live streams, you agree that any questions submitted by you might be used by us in the future on this YouTube channel. We will not share your personal information.

If you have questions, please write to us at: asktom@talkmoneywithtom.com.

  • MoneyGuidePro®
  • Advent Software/Black Diamond Reporting
  • Riskalyze, Inc.
  • thinkpipes®
  • Right Capital
  • YCharts, Inc.