In this episode, we delve into the dynamic world of market analysis with professional money manager Bill Gunderson. With insights into current market trends, we explore the effects of CPI fluctuations and ongoing tariff discussions that grip the economy. Discover how these elements shape market movements as we dissect the latest economic reports and their implications for investors.
He’s been seen on CNBC, the Fox News Channel, and the Fox Business Channel. His articles can be found on MarketWatch, Seeking Alpha, TheStreet.com, and many other places. He’s the author of the weekly Best Stocks Now newsletter and the inventor of the Best Stocks Now app. He’s president of Gundersen Capital Management. Here is professional money manager Bill Gundersen.
SPEAKER 05 :
And welcome to the Tuesday, the Tuesday edition of the Best Stocks Now show with professional money manager Bill Gunderson, president of Gunderson Capital Management. And I’m here with Barry Kider, chartered financial analyst. And boy, do we have a start to the market today. Holy cow. Yesterday we had booming lightning and thunder all around us as we were doing the show. Today we’ve got booming thunder and lightning all around us in the market. Although the NASDAQ has pulled back a little since the open. The Dow is up 371 points. That puts it at 44,345. Right now it’s kind of range-bound in the 44,000 to 45,000 area, kind of a little sideways trend there that it’s got going on. The S&P is up 23,6396. And the NASDAQ is now up just 20 basis points. That’s 42 points.
SPEAKER 1 :
21,427.
SPEAKER 05 :
The Russell 2000 is up three-quarters of a percent. No terrifying of gold, meaning tariffs placed on gold, trades and whatnot. Gold is down on that news, down 20 basis points to 3,397. We’re up four points on the 10-year after a fairly good CPI report. We’ll get Barry’s take on that in a minute. Crude oil is down and Bitcoin is hitting today 119.395. So welcome to today’s Best Stocks Now show with professional money manager Bill Gunderson, president of Gunderson Capital Management. a nationwide fee-based only money management firm. We do things just a little bit differently here at Gundersen than most of the folks out there. And I would say the biggest story today here is, we’ll get to this in just a minute, is the CPI report because that’s what the Fed is watching, okay? Whether we think it’s interesting or not, they’re watching it, and that’s all that matters. Big deal. My eggs were up 3.1%. Do I really care? Well, interest rates need to come down. They’re too high. We need to give some help to the real estate market, in my opinion, and I think Jerome Powell is behind the curve. What do you think today? Does that guarantee, or was it a little on the hot side?
SPEAKER 06 :
Mostly came in kind of as expected. The headline number that you’ll read is 2.7% for the last 12 months. That came in line as expected, same number that we had in June. Now, the one part that’s gotten a little focus is the core CPI, which excludes the stuff we need like food and energy. Yeah. It was supposed to come in at 3. It came in at 3.1. Still a little hot, you know, a tad bit hotter than expected. You know, I think what we’re kind of holding our breath for, right, is when you see, you know, at least from what economists have thrown out there, that we’re going to at some point see some big jump because of, you know, the tariffs. Well, you know, we haven’t seen that yet, right? I did see some numbers where… You know, tires were up, you know, half a percent. Uh-oh, tires. A couple other items that are, you know, kind of things that you could maybe kind of backtrack to tariffs potentially, right? But a lot of this information, we’re not going to know for another 12 months in terms of how those tariffs affect, you know, consumer prices. You know, there’s a ton of, we’ve seen a ton of pre-purchasing ahead of time. So companies are kind of working through some of that inventory still. So they still haven’t, you know, had to pass prices on if they didn’t want to. They didn’t try to take advantage. But overall, you know, fairly benign, really came in as expected. I think what, you know, the market was worried about is, Some big surprise, and we didn’t get that. So we move on to the next report, I guess.
SPEAKER 05 :
Well, you know, when I see the headlines, it really scared me. Here’s the headline. Core CPI accelerates to 3.1. Okay, so I think of an IndyCar racer coming out of the pits and, you know, lead foot putting the gas on and accelerating. Oh, no, the market’s going to get clobbered today. Then I go over and I look at the way the market was reacting, the futures were reacting, and I said, well, the market’s not too worried about it. Before the CPI came out, the futures were up like two points, okay? Sensory flat. Yeah, so the market obviously disagrees with the headline, which many times – You know it. Look, they slant the headlines to try to make certain people look bad. And that headline was wrong, and the market is kind of cheering this report.
SPEAKER 06 :
It’s funny you say that because I found one on CNBC that was – they also tend to be a little hotter than – they focus on that. Today, I don’t know if this means that some of the narratives changed a little bit. There it says, consumer prices rise 2.7 annually in July – less than expected amid tariff worries. So, you know, who knows, right? I mean, it’s that rhetoric that’s really been certainly slanted against the administration and against kind of what’s going on tariff-wise. Yes. And, you know, maybe we’re seeing a little easing there. I mean, you’ve seen consumer sentiment and individual investor surveys.
SPEAKER 05 :
Retail sales reports, jobs reports, the market hitting new highs. Yes. You know, the negative headlines, you know, keep it up, guys. It’s really making you look more and more stupid all the time, which shouldn’t surprise anybody. But anyways.
SPEAKER 06 :
We’ll say energy, you know, the biggest deflation, right, occurring out there, if you look at the 12-month numbers, is in, you know, energy down 40%. 1.6%, the whole energy sector. It’s the only negative one besides apparel. And then energy commodities down 9% year-to-date or the last 12 months. You’ve got gasoline down 9.5%. Fuel oil down 2.9%. So on the oil or gas side, you’ve made some headway in terms of prices.
SPEAKER 05 :
Yeah. Okay, and then just other Trump news here today. The tariff war with China, that’s been extended for 90 days, so there’s kind of a truce there in that. And there is talk of allowing China to have some of the NVIDIA, you know, the big chips, the high-speed ones, but lacking a few of those things. I’m sure Jensen Wang knows exactly what to leave out. And I think he’s explained that to Trump. And then also, Trump has changed his position on the Intel CEO, who he was worried was an agent for the CCP, Communist Chinese Party, and said he calls him a success days after demanding his resignation. Okay, yes, he does change minds a lot and flip-flops a lot. He also nominated E.J. Antony as Bureau of Labor Statistics. I hope it’s a guy that can get numbers right. That’s all I care. I hope he walks around and he’s got a calculator in his pocket and a sharp pencil, kind of like the engineers of Boeing. I got a friend at church, and he’s got a calculator in his pocket. He’s a true engineer. One day we had to set up the chairs. We set up the chairs the day before church. He’s got his laser beam out, Barry, so we get them straight.
SPEAKER 06 :
I was going to say a T-square or a protractor, but you’re just lucky. You’re just lucky.
SPEAKER 05 :
You’re just lucky to have me here on a Saturday morning setting up these stupid folding chairs. And you want a perfect straight line, but that’s an engineer for you. I’m glad he’s working on our airplanes, a guy like that, and not counting our labor statistics like the people we’ve had. Anyways, retail inflation comes in largely in line, core CPI slightly hot. I think that’s the best way to sum it up. If you buy a lot of footwear, well, there’s some tariffs involved there, right? And I also see baby clothes are up a little bit. Well, I’m sure there’s some tariff impact there. But really, the tariffs are not showing up yet in consumer prices and in the CPI numbers. So anyways, and we’ve had companies. We just went through an entire earnings season. And I can count on probably two hands, you know, less than 10 companies that said, wow, we’re really being impacted by the tariffs here and we’re warning on the tariffs. And it’s mostly the companies that moved all of their manufacturing offshore. which didn’t play well in Peoria and other cities that lost that manufacturing. So there’s not a lot of sympathy for them, but that’s kind of it. All right, now, getting lost in all of this, I was really surprised over the weekend when I looked at the Japanese market. That’s probably, you know, it’s hitting a new all-time high today. And I think AI and I think that SoftBank, SoftBank is also hitting a new all-time high. I’ve owned SoftBank in the past, S-F-T-B-Y. It’s like owning, I mean, look, you’re getting exposure to venture capital, a lot of the future technology companies. SFTBY is up 6.1%. It’s also hitting a new high today. A little more on that when we come back. This is the Best Docs Now show. And welcome back here to the second quarter of today’s Best Docs Now show. You know, over the years, I can make the argument, and I have a strong opinion that a little inflation is good, really. It shows that you’ve got a vibrant, robust economy and that there’s demand. There’s demand. And, you know, Japan has been a very much underperforming market over the recent years after hitting all-time highs. You know, I don’t know. This was back in probably early 2000s. But over the last 10 years, Japan has only averaged 6% per year, their stock market. Well, ours has averaged 20, almost 21% per year returns, which is a phenomenal decade for us. and a very so-so decade for Japan. But this year, Japan is now up year-to-date 17%. Well, we’re up half of that, 8.4% on the S&P 500. There has been some shifts in Japan. Maybe it’s more tech-oriented, but inflation has come back to Japan a little bit.
SPEAKER 06 :
And currency-oriented. I mean, when we look at those returns in dollars, same thing with the European market. You can look at both of those and return is more associated with currency changes, right, in terms of the yen strengthening against the dollar year-to-date. Same thing with the euro against the dollar year-to-date. versus their markets doing well, right? I mean, we still have a higher GDP growth than certainly in the Eurozone. Right, and so it’s a… A lot of that currency translation tends to shake out over time, but it is pretty remarkable in terms of the gains that they’ve had.
SPEAKER 05 :
Yeah, and their interest rates have moved up from 1.1 all the way up to 1.4 this year. So the carry trade is still doing fine. I mean, that’s still cheap money, but they had interest rates near zero. Virtually zero for almost 20 years. Yes, zero population growth, zero GDP growth. and they’ve got a little bit of mojo going on. I think it’s tech-oriented. And for me, the way to play Japan, and I have done this in the past, SoftBank trades as a… I don’t think it’s an ADR. It has five symbols, but it trades heavily. You can easily invest in SoftBank, which is a $147 billion market cap company, and they’re the ones that have been here with Trump and others and investing in America. We read yesterday that they’re going to repurpose a plant in Ohio away from EV and make it more AI. We’re going from EV to AI very rapidly. So I just thought I’d bring that up as SoftBank leads tech surge as Japan’s Nikkei hits a record high. And, of course, SoftBank has a lot of exposure to some of the great companies and a lot of the ones that have not gone public yet. Now, on the other hand, going the opposite direction of Japan is China. Why? Because demand for their products has lessened with those tariffs. Chinese manufacturers are facing a squeeze as the U.S. tariffs begin to bite. Their unemployment rate is around 5%, but underemployment is worsening, exacerbated by tariffs, And overcapacity, Japan has a problem with that. You know, they had overcapacity in their real estate markets. I mean by a lot, like a lot. And there’s a lot of claims that their EV cars are over capacity, and there’s a lot of them sitting in lots unsold. But I think that business owners, workers, analysts might be getting squeezed over there. There’s a squeeze on workers’ income. There’s a decline in consumers’ confidence. Retail sales are weakening. And inflation is hitting zero, which goes along with my theory that a little inflation is good. Like this 3.1 that came in, hey, at least demand is robust and things aren’t sitting on the shelf and the consumer is still strong.
SPEAKER 06 :
But anyways… And that’s why they would… I mean, the Fed targets 2%, right? Otherwise, they would target zero, right? If that’s what they were shooting for. You need a little… Otherwise, we get in a stagflation environment. And when you get in that or a deflation environment, the problem is everybody’s incented to… Wait a month for prices to keep going down, right? And it ends up being a self-fulfilling prophecy where no one buys anything and waits for prices to go down.
SPEAKER 05 :
Yes, and Japan has had to turn to other countries around the world. Their U.S. exports dropped by 21.7 in July. That’s a huge drop. Instead of 300 containers on those ships coming in, you can subtract 60. You’re down to 240. That’s about a 222% drop in shipments. They’ve increased their exports to the European Union, Southeast Asia, Australia, etc. I’ve also read that temporary work is becoming more of a common thing in China. Which is almost unheard of in that country. So, anyways, there’s the tale of two Southeast Asia countries. One going up and one kind of having some issues right now. Now, here’s one from the past. Man, this is almost a sad story. Eastman Kodak flags a going concerns doubt. I remember when Eastman Kodak was a member of the Dow and one of the great companies in the world. I used a lot of Eastman Kodak products as I attended concerts in my high school years. And because my father had a contract with the sports arena in San Diego, we got front row seats to every event in the sports arena. So I was real popular, Barry, in high school with Led Zeppelin coming to town, Leonard Skinner, Paul McCartney, Crosby, Stills, and Nash, Paul McCartney and Wings. I sat in the front row with my camera until they started not allowing cameras in. And then I would take my film, I’d drop it off at a place on the way home from the concert to get developed. using Eastman Kodak chemical. Now, what did digital do to Eastman Kodak? Well, I mean, they’ve put out a going concern, meaning they don’t think they’re going to survive. They’re on their last little bit of money, and they really don’t know what they want to be, and so trouble at Eastman Kodak. In fact, a going concern issued by them. Nvidia and AMD’s China AI chip sales deal, that’s that 15% goes to Trump and the US government goes to the US coffers on sales. B of A says that’s an incremental positive for these companies. I don’t see how it is, but they’re saying that because in return for the 15% penalty, the U.S. government is willing to let NVIDIA and AMD ship specific AI chips to China. So maybe that is an incremental positive. And then I see that there may be a loosening on this not letting them have the really high cost Grade chips, maybe just a step under that, somewhere in between the H2O and the big ones. NVIDIA is actually down 60 basis points today, and AMD is flat on the news today.
SPEAKER 06 :
I saw something from China where I think they’re towing…
SPEAKER 05 :
their their own you know folks uh not to purchase i know i saw that that’s kind of concerning that that’s what worries me they’re afraid that we’re spying on them and they’re warning their people don’t buy these h2o chips from jensen wang over there he’s taiwanese they’re spying on us so is the u.s don’t buy those chips well we’ll see uh people are buying the chips we’ll be right back This is Bill Gunderson. Thank you for tuning in to today’s Best Stocks Now, Best Inverse Funds Now show. I put several hours of research in during the wee hours of the morning each day to bring you the very best cutting-edge stories that I can. To get two free weeks of my newsletter, go to GundersonCapital.com. To talk to us about our fee-based only money management services, call us at 855-611-BEST. Now, back to the second half of the show.
SPEAKER 02 :
We’ve got to get together.
SPEAKER 05 :
And welcome back here to the second half of today’s Best Docs Now show. There’s a biotech that’s showing up on my radar here today that I thought I’d just bring to your attention because there’s going to be a decision on what could be quite a breakthrough drug for fibromyalgia, which apparently impacts a lot of people. out there, Tonics Pharmaceutical, TNXP, is going to get a decision, which could go either way from the FDA for a flagship drug called Tonmaya. It’s interesting that it shows up in my app. You know, the app knows nothing about the news, knows nothing about what’s in the laboratory, knows nothing about the FDA. but has just been pointing to it because of the momentum that’s building in the stock. And, of course, high risk. I mean, look, if they deny this stock, it would be bad. The stock was up 24% yesterday, and this fibromyalgia news could be big for this New Jersey company. It’s only a $600 million company. It’s not even a small cap. It’s a micro cap. But it has a very strong chart. It has an interesting history, a lot of reverse splits, a lot of failures over the years. Barry, I would say that they’re really depending on this one way or another for their future. But I thought I’d bring that to your attention. If you suffer from fibromyalgia or know people that do, hopefully, maybe, maybe this is a breakthrough. You know, another important tool in the app is ranking the sectors of the market. That’s very critical. It doesn’t matter if you buy individual stocks or whether you buy ETFs. In fact, it’s even more important if you’re shopping in the ETF aisle of the supermarket. I can’t tell you how important it is to be in the right sectors. I’ve broken down the market into 70 sectors. And I use representative ETFs to grade them. Now my Best Stocks Now app is a relative system. It looks at the market and on a relative basis, where is the strength now? And I think when I read you these top 10 sectors, you’re going to see just how accurate the app has been in identifying the leading sectors. The number one sector in the market right now continues to be metals and mining. And I’ll tell you why. It has a lot of the rare earth stocks, number one. Number two, gold and silver have been at or near the top of the market all year long. So that’s the number one ranked sector. In fact, if you look at the overall app of 5300, that sector is ranked number five. It’s ahead of most stocks out there. European financials are number two. They’ve had a phenomenal year, which I’ve never seen that before. This is the first year I can remember where European financials, and I think that’s because their Fed and their interest rates, their central bank has been more favorable, and money flows where the money is easier, and it’s easier in Europe than it is here in the U.S. Number three, this is the one that really surprises me. In fact, our next story is from a company in the space and exploration sector. where you have Rocket Labs and you have AST SpaceMobile and you have others that are in the boom we’re seeing in space. The number four ranked sector is generative AI. Okay, no arguments with that. Number five is the nuclear renaissance sector. No arguments there. Nuclear has been a leading sector. Then you’ve got aerospace, which includes a lot of the space stocks. Then you’ve got information technology, which is a lot of the AI stocks, NVIDIA, Palantir, et cetera. And then rounding out the top sectors are gold and silver. So there you go, 70 sectors, and you don’t want to be in the bottom-ranked sectors, right? I mean, those are sectors that are doing… Healthcare is the bottom sector of all the sectors in the market. It’s been a horrible sector, led by UnitedHealthcare to the downside. The cloud has not been a good sector this year. Copper, the digital health has not been. That’s all the telemedicine. Oil and gas has been a lousy sector this year. Solar energy has been. Real estate has been terrible. The REITs. So I can’t tell you how important. I put that in my newsletter every week. Here’s the top ten sectors in the market compared to last week, the week before. And then I show you the worst-ranked sectors to avoid at all costs. That’s part of active management. Passive management would say, hey, you want exposure. You want to weight your portfolio like the S&P has weighted its portfolio. I say phooey to that. You want to leave out the worst sectors, and you want to be more concentrated in the sectors that are flourishing in today’s market.
SPEAKER 06 :
Yeah, no better example than UnitedHealth. I mean, we kind of use this one as an example all the time. I mean, institutional ownership is still over 88%, right? And what does that tell you in a stock that’s down, what, over 50%, I mean, maybe 60% this year? If they could get out of it, they would, right? And so either they’re pigeonholed because of a strategy or – Who are they going to sell it to if there’s only 10% of non-institutional investors who don’t own it, who own it?
SPEAKER 05 :
And the health care sector has got a lot of Pfizer and Merck and companies that don’t have much in their pipeline, Bristol-Myers, Johnson & Johnson, etc., It’s a terrible, horrible sector. But I can remember the day when one of the best mutual funds out there was T. Rowe Price Healthcare. Anything healthcare was hot. The HMOs were hot. But that was then. This is now. And that’s why, on a relative basis, you want to be seeking out… and then obviously the other beauty of the app is once you find the leading sectors in the market for instance space or aerospace you can go in and click on that sector in the app and it’ll show you the ranking of the stocks within that sector based on performance momentum and valuation which I added to my quant system the valuation is half of the formula uh in my ranking system so anyways i was reading yesterday or today usa rare earth has signed 12 memorandums of understandings uh year to date they’re talking with 70 companies They’re getting ready to fire up a mine for rare earth and production of a new magnet facility. Who would have ever guessed that magnets would be so important in today’s world?
SPEAKER 06 :
I need to clear off our fridge and see how many dollars in magnets I have on the air.
SPEAKER 05 :
Yeah, the other day I was sitting in church and there was a kid nearby and she passed me this thing. It was one of those magnetic beards. You remember that? With the magnet and you drag the thing and you can make a mustache and eyebrows. And I’m thinking, you know, this stuff is using technology. I wonder how much you’ve got to pay for one of these little games now with all the magnets in here. But anyways, USAR.
SPEAKER 06 :
I wonder how much an old Etch-A-Sketch is worth now.
SPEAKER 05 :
Yeah, there’s probably some silver oxide in there or whatever. You don’t want the kid eating it. I know that. Okay, circles. Let’s circle back to circle. You know, look, okay, there’s a lot of companies now that there’s a whole industry now. There’s a whole sector called cryptocurrency. and uh… i have not broken it off i need to uh… i need to find the time to break off crypto maybe i have been to its own sector this in the financial sector and uh… i was reading about a company today that’s building a tm machines and putting them around the country uh… and uh… their crypto based a tm machines okay so you can go in with your card and get cash out from your crypto holdings if you’ve got an account at robin hood or e toro group i see e toro has reported earnings today they’re a competitor to robin hood But it just looks to me like Robinhood. I mean, they’re not much of a competitor right now. I’m a little disappointed in their quarterly report that they put out this morning. One of our largest positions is Robinhood. It’s also been one of the best performing stocks in the market. Not only does Robinhood, you know, it’s online. It’s mobile trading. These kids now, they’re trading online. They’re looking at charts on their mobile phones. I think maybe we’re morphing towards magnified eyes that can see small things, you know, and things like this. Times are changing. I need a big screen to look at charts, Barry. I need at least a laptop. I don’t think charts show me much on a mobile phone, but that’s the way the world is going.
SPEAKER 06 :
We need you one of those gaming monitors that are, you know, just massive. It looks like you’re immersed into the chart. Yeah, I don’t need them that big.
SPEAKER 05 :
Then I kind of get lost in space. You know, I like my little laptop. But anyways, eToro is out with earnings. They’re down 6.1% right now. We’ll be right back.
SPEAKER 01 :
Hey, you gotta go where you wanna go, do what you wanna do.
SPEAKER 05 :
And welcome back here to the final segment of today’s Best Stocks Now show. I wanted to do this yesterday and we didn’t have time. I want to give you an update on this earnings season, which is now winding down. We’ve got 90% of the companies have reported. This is for the quarter that ended on June the 30th, the second quarter of 2025. Here we are August 12th, six weeks later, but most of the companies have now reported their earnings. And I’ve said it before and I’ll say it again. If there’s no other lesson you learn in the stock market is that stocks and indexes follow earnings. Earnings go up, stock goes up. Earnings go down, stock goes down. And not only actual earnings, but earnings expectation. Stock raises their guidance for next year. Stock goes up. It follows those expectations higher. A stock warns about lower earnings ahead. The stock sells off. There’s no more important indicator and factor other than the market itself. You’ve got to have a good market. You can have a great stock. You can be in a bad market. You’re not going to make any money on that stock. Earnings are important. They’ve driven the S&P since 2009 when earnings bottomed out for the S&P 500 companies. They’ve been going up every year since then, believe it or not, except for 2020, the COVID year. And as an analyst, as a CPA, as a whatever income statement reader, you throw that out as an extraordinary event. Earnings have been going up since 2009, and the market has been going up since 2009. The S&P has gone from 660 on up to where it is today, and it’s because it’s followed earnings and earnings expectations. So if earnings expectations are so important, it’s pretty… Important to know what the expectations are for earnings next year or the rest of this year. Let’s begin with the rest of this year. We’ve still got two quarters left. The earnings have pretty much been baked into the cake of the market for this year. Now we’re looking ahead to next year. Are earnings going to continue to go up? What are the expectations? This market has to trade on expectations right now as it looks ahead. And even more importantly, the market’s looking ahead to 2027, believe it or not. And if you can remember that, that the market is forward-looking, that helped lead me to my market call that I made in March of 2020. I said, the market is forward-looking, and it sees a resolution to this COVID crisis. And now’s a very good buying time for the market. And I did the same thing at the beginning of 2023 when the Fed was starting to wind down their rate hikes. I said, you know, the market is looking ahead to the end of these rate hikes and earnings to get a boost from lower rates going forward. And this is a good buying opportunity. And I did the same thing in March of this year. When the S&P got down to 4,800, I said, this is still a good environment for the stock market. I’ve seen very little impact on the earnings estimates from all this tariff worry. And I was right again. So if you focus on earnings and you leave pretty much, oh yes, you’ve got to watch events in the world and all the other things out there. But at the end of the day, they all impact earnings in one way or another. Okay, 90% of the companies have reported so far. 81% have beat earnings. 81% have beat their sales estimates. You know, the analysts just don’t catch on, Barry. 81% of you guys is going to be too low on your estimates. Why don’t you just be a little more optimistic and maybe you wouldn’t have so many companies beating estimates.
SPEAKER 06 :
Under-promise, over-perform is the name of that game, right?
SPEAKER 05 :
Yeah. The year-over-year earnings growth for this quarter is now expected to be 11.8% versus the same quarter last year. Why is the market hitting new highs? Because earnings are hitting new all-time highs. It’s as simple as that. And earnings expectations are also hitting new all-time highs. I outline that in my newsletter every week. It’s vital to stay on top of the earnings estimates going forward because that’s what the market is looking to for its guidance. Now, why is that 11.8% number so good? Well, that’s double-digit earnings growth over the same comparable quarter last year, number one. Number two, when we began this quarter, the expectations were for only 4.8% growth. So who gets credit? Who are you going to give the credit to? I give the credit to the CEOs of America of the S&P 500 because they’re driving the bus of these companies. There’s a lot of bad, mediocre CEOs. In fact, the majority of them are bad. Not visionary, don’t know how to grow things, don’t know how to adapt, don’t know how to come up with new products. But that 10-15% of the visionaries out there and great CEOs are driving earnings growth higher, many of them from the tech sector. So to be expecting 4.8% at the beginning of the quarter, now here we are 90% into this quarter, we’re now expecting 11.8% that’s phenomenal okay and the earnings growth or the sales growth is I think 6.3 somewhere around there and I would just say that the forecast for next year and the following year are good however having said that we’re at very high multiples You can’t trade at 40 times multiples. The market’s not going to do that. The market over time has traded in the 18 to 20 area. And right now we’re at 22, so that puts things in perspective for you. That means there’s a lot of demand still for shares and to be invested in the stock market. And that’s keeping the momentum high, and it’s allowing investors to kind of look past the current P.E. and forward P.E. and say, I still want in, even though Palantir’s 300 times earnings and NVIDIA’s gotten up to 60 times earnings and whatnot. So that’s just putting things in perspective for you. The P.E. ratio of the S&P 500 right now is 27%. The five-year average is 25. The 10-year average is 22.5. So that also puts things into perspective for you. That’s why you have to be a little bit on guard right now because of these high valuations. Any kind of a scare to the market. would cause a sell-off because there’s some big profits out there and people looking to take those profits at some point in time. All right, well, we’re going to end it there. We’ve got a San Francisco Bay Area trip coming up in mid-August. We’re going to do a workshop on August the 15th. September, September. september the 15th and 15th and 16th we’re going to meet all day with folks that want to meet with us you better reserve a spot we were full in detroit in bloomfield hills call ed at 855-611-BEST to get a four-week trial to the newsletter and watch those earnings estimates every week gundersoncapital.com have a great day everybody
SPEAKER 04 :
This show is not a solicitation to buy or sell any securities. Bill Gunderson or clients of Gunderson Capital Management may have long or short positions in stocks mentioned during the show. Past performance is not indicative of future performance. Gunderson Capital Management is a fee-based registered investment advisory firm. All accounts are held at Charles Schwab. Schwab is a member of SIBC and FINRA.
