☕ A quick few thoughts on why the rally can continue
Nov 10, 2024Good morning from Japan! 👋
I’ll keep it brief today for two reasons:
- There isn’t a lot happening that we haven’t already talked about; and,
- I’m about to sit down for a lovely family dinner then get to packing before heading to the airport tomorrow morning.
The question on the minds of many is whether or not the “melt up” can continue.
I think so. (Watch)
The macro picture certainly supports my thinking.
According to FactSet:
- Approximately 91% of S&P 500 companies have reported Q3 results and of that 75% have reported positive EPS surprises – meaning above what analysts expected while 60% of ‘em have reported positive revenue surprises.
- The blended earnings rate is 5.3% which, if it holds, will mark the 5th consecutive quarter of YoY growth, while the blended revenue growth rate is 5.5% which, if that holds, will be the 16th consecutive quarter of revenue growth and the highest revenue growth rate reported since 2022.
- What catches my attention, though, is that 9 of 11 sectors are reporting YoY growth in revenue led, not surprisingly, by IT, health care and communications tech – all of which are logical first tier spillovers for AI related spending and results. Defense is right up there, too.
Speaking of which, I want wish everyone who served a Happy Veterans Day.
My family and I are deeply thankful for your service but more importantly for the fact that you stepped forward when others could or would not.
See you back in the US shortly.
You got this – I promise!
As always, let’s MAKE it a great day,
Keith 😀
