earnings Archives - Runnymede Capital Management

Houston, We Have an Earnings Problem

We are currently in the thick of earnings season as companies are reporting their quarter ending December 31st. Expectations are for S&P 500 earnings growth of over 20% which is an extremely strong number especially considering that the previous year grew a healthy 12%. However, lapping that type of growth is going to be a challenge, and forecasts are being revised down quickly for the first half of 2019. That is why we believe there is a growing likelihood of a slight earnings recession occurring in 2019.

Andy Wang on Reuters TV: Earnings and elections will power stocks higher

Last Friday, October 19th, Runnymede managing partner Andy Wang returned to The Reuters Building in Times Square to chat with news anchor Fred Katayama. In this segment, Fred asked Andy about a variety of subjects including market volatility, midterm elections, and sector rotation. Watch the segment below.

Should you buy or sell the spike in fear?

The Dow dropped 1300 points in a couple of days and the CNBC fear machine cranked into high gear. Even Fox Business News got into the action with the headline grabber “Biggest market crash in our lifetime coming – economist Harry Dent.” Of course if you google “Harry Dent crash,” he makes the same call every year so it is meaningless. The real question is: should you buy or sell the fear? The answer: it depends.

Andy Wang on Reuters TV: Tariffs, Earnings, and Service Sector Companies

Last Friday, August 31st, Runnymede managing partner Andy Wang returned to The Reuters Building in Times Square to chat with news anchor Fred Katayama. In this segment, Fred asks Andy about a variety of subjects including trade talks, emerging markets, and why Runnymede likes service sector companies.

Fundamentals matter: the bull market grinds higher

After the historic low volatility seen in 2017, the first four months of 2018 have felt especially turbulent even though the market has largely moved sideways. The 24 hour news cycle has been louder and gives negative news more amplification. Worries this year have focused on the potential of trade war with China, rising inflation and interest rate hikes. While these are certainly legitimate concerns, we suggest to our clients and readers that you often need to turn off the news and simply focus on the fundamentals. The good news is that fundamentals from US corporations are still improving and point to a bull market that should continue to grind higher for the rest of the year.

S&P earnings are strong and optimistic for 2018

The constituents of the S&P 500 are wrapping up an extremely strong 4th quarter earnings season. Even before tax reform kicks in, corporations reached record operating profit margins at 10.4%. Furthermore, companies beat on the top and bottom line with over 75% beating estimates which is an eight-year high. Looking ahead, it is no surprise that earnings revisions are trending higher across all sectors.