A Sneak Peek of My Latest Webinar
January 16, 2020
Every month, Profitable Investing subscribers are invited to an exclusive, members-only webinar where I cover the current market landscape, review our individual holdings and answer dozens of members’ questions live on air.
The latest presentation, How I Evaluate Markets & Make My Recommendations, was held last week and covered a variety of topics over a two-hour stretch.
We talked about the work and research that goes into every new Profitable Investing recommendation, current economic conditions, the opportunities I see on the horizon, current and future risks to the stock and bond markets and much, much more.
Drivers for Further Progress
In terms of the current landscape, I see a number of positive factors that should result in further upward progress for the stock market.
With the Federal Reserve and its Open Market Committee (FOMC) keeping a lid on benchmark short-term finance rates and the bond buying and portfolio maintenance, there’s a sea of cash in the market aiding bond prices (reducing funding costs for companies) as well as aiding stock buying models.
And with the ongoing onslaught of cash heading to stock funds, including regular contributions to qualified plans, that cash has to go to the market.
But for better sales and earnings, the underlying stocks of the S&P 500 Index need the consumer to remain active in spending. And right now, the consumer continues to spend.
The US Personal Consumption Rate is up by 3.20% as part of the Bureau of Economic Analysis GDP data.
US Personal Consumption Rate—Source: Bureau of Economic Analysis & Bloomberg Finance, L.P.
But we also need consumers to keep spending. And that can be measured in their “comfy” level as tracked by the Bloomberg Consumer Comfort Index, which surveys current and projected household personal financial conditions as well as willingness to spend in coming months.
Bloomberg “Comfy” Index—Source: Bloomberg Finance, L.P.
The Comfy Index continues to rise, reflecting the great labor market and nearly double the average wage gains over core inflation. This argues for more consumer spending, aiding S&P 500 Index sales and earnings.
Gold with a Dividend
Also included in the excerpt is our discussion of Franco-Nevada Corporation (FNV), which I previously brought to your attention as the gold stock with a nice dividend on top.
It has more than doubled the performance of the popular SPDR Gold Shares ETF (GLD) since we added it to our Profitable Investing portfolios.
And while I’ve shared my thoughts on FNV with you in this Digest before, I simply did not have the space to go into this same level of detail.
So, today I want to share an excerpt from the session to give you an idea of what you’re missing out on.
In the clip below, I go into much more detail about the economic indicators I’m watching and why I think stocks have room to run. And of course, you’ll get my latest in-depth thoughts on why Franco-Nevada is the best way to own gold in this market.
Click below to watch a clip from the presentation:
All My Best,
Editor, Income Investor’s Digest & Profitable Investing
Author, Income for Life
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