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Profit Variant Propels Stocks Higher In July




Aren’t you glad you’re don’t pay attention to mainstream financial media.  Or mainstream media of any sort for that matter.

Oh, it’s fun to take a peek every now and then to see the narrative of the day.  I love seeing those compilations of various networks and local stations parroting the exact same sentences about the exact same stories on any given day.  

At least we didn’t fall for the panic porn mid-July.  And there’s no reason you should as I always discourage daily market watching.  I seem to recall it was a Monday. The Dow falling 725-points, around 2-percent.

Of course it was the Delta variant.  Pundits proclaiming this was it.  The big pullback.  You’d better vaccinate your portfolio and get out.

Like you, the folks who ignored the “Science™”, the financial Fauci’s of the world, were nicely rewarded for their so-called ignorance.

Don’t underestimate the profit variant.  Through that Thursday, 85% of companies reporting second-quarter earnings did better than expected.  That means that made more money than the professional analysts said that would.

By weeks end the market rebounded, with the three major indexes hitting all time highs.  The Dow even breaking the 35-thousand threshold.

And July wasn’t even over yet.

The Dow finishing up the month a little better than one-percent higher at 34,935.

The S&P 500 finishing July nearly 2.5-percent better, its sixth straight month of gains.

The NASDAQ a touch better than one-percent for the month.

There you have it, my latest exhibit, making the case for filtering out the daily drama, the crisis du jour, the talking points designed for group thinkers.  

We don’t fall for that.  We’re investors.  Not traders or speculators.  We get on living and ignore the nightly narrative.