Join professional money manager Bill Gunderson as he explores the impacts of rising interest rates, the volatile bond market, and the dominance of large-cap stocks. Get expert analysis on the construction sector, employment trends, and the role of earnings growth in market corrections.
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 Wednesday. It is the Wednesday, the chilly edition, the January the 8th edition of the Best Docs Now show with professional money manager Bill Gunnarsson, president of Gunnarsson Capital Management. The market was a lot chillier before the open and the futures. They were down quite a bit, but we do have a split decision right now with the Dow down 106 and the NASDAQ up 14 points right now. after a 350-point down day in the NASDAQ yesterday. The S&P 500 is basically flat right now, while the Russell 2000 down 1.4%. The small caps just can’t get out of their own way. You know, every time there seems like they’re going to rally, they fall right back again, and they’re just being dominated. and continuing to be dominated by the large cap stocks. Meanwhile, the bond market is the real issue right now. The 10-year was over 3.7 today. Last time I looked, it was at 3.71. Let’s see where it is right now. Or 4.71. I mean 4.71. It’s at 4.7. Okay, now here’s the thing. That is resistance, okay? It got to 4.7, no, nine months ago, and that’s as high as it went, and it started backing off. We need it to start backing off right now. And over at the Bitcoin markets in the pits, the Bitcoin pits down 3,550 to 95,798. So welcome to today’s Best Stocks Now show. With professional money manager Bill Gunderson, president of Gunderson Capital Management. And we have Barry Kite, our chartered financial analyst. our certified financial planner. And Barry, what is it? You’re very close to getting another designation added to your business card.
SPEAKER 06 :
Yeah, if I don’t butcher it, CMT is the easy way to say it. Chartered Market Technician, essentially. You take the CFA, which is very much fundamental analysis, right? The old… uh, Warren Buffett, uh, Ben Graham approach. And then of course the other side is technical analysis, which is what, which is what the, uh, CMT, you know, focuses on. And if you look at the curriculum and the CFA, you know, they may talk about technical analysis, maybe 2% of the whole, you know, three levels. Uh, and this one, uh, just finished up a level two. So, uh, be, be hopefully taken level three and, and I think it’s in June, uh, But, yeah, it’s just the CFA side of technical analysis, as we do and you do. The reason you and I got together years ago is because of the fact that I was a believer in blending both of those. And, of course, that’s been your philosophy for a long time and the impetus for the app.
SPEAKER 05 :
Absolutely. Now, when you get three designations, do I have to salute you when I see you or bow down or anything?
SPEAKER 06 :
I’m a junior already, too, so that even messes it. That already kind of throws it out. Maybe I just need two business cards, maybe.
SPEAKER 05 :
I don’t know how much font size. They’ll take the whole first five minutes of the show to introduce you.
SPEAKER 06 :
It needs more vowels, though, if we’re going to play Scrabble. I can only do something with just the A. Anyways, we had a huge sell-off in the NASDAQ yesterday.
SPEAKER 05 :
Kind of weird, really. I mean, CES opened on Monday. Jensen Wang, he gives the keynote speech. He is now the market mover in the market.
SPEAKER 02 :
He is the keynote.
SPEAKER 05 :
Him and Elon Musk are the guys that can do it, and the Fed, those three. And Jensen Wang’s keynote speech just didn’t really go over very well. I don’t know. It could have been more interest rates. And that interest rate picture is very important. You know what? I can’t tell you how, because that impacts the multiple, the P-E ratio of the market, of how much people are willing to pay for earnings and sales and book value and cash value of a stock. Despite the Fed’s best efforts in driving rates down, rates have actually gone up. I’m hoping, and I put out that chart this morning of the chart of interest rates, and you can see clearly that 4.7 is the top resistance. Now, if we charge through that and go to 5, that’s possible, but that’s what’s really got the market nervous right now, especially the higher PE stocks and the longer duration stocks. Now, if we can stop here at 4.7 and start heading back down towards the low 4s, that would be good. That would be favorable for the market. That’s what I’m hoping for, but I have no control over that. We’ll just have to see. how it goes. Big Tech got hit hard yesterday. I know Kathy Wood was selling Palantir, so Palantir took a hit. Oil’s up to $74 a barrel. That’s another, you know, that’s an inflationary measure. And that could say, you know, the Fed, I just don’t see any interest rate cuts in the future unless, you know, Trump comes in and really puts the pressure on the guy. to lower rates. Trump obviously thinks rates are too high. Of course, any builder, any construction guy is always going to say rates are too high. If they’re 1%, they’re too high.
SPEAKER 06 :
You want a cheaper cost of capital.
SPEAKER 05 :
Yes. And you know, I’d had something to say about this. My father was a pretty wise guy, wise man. You know, he didn’t have any designations or any degrees, but he had a lot of life experience in the real business world. And he used to say, you know, the business we were in, we did a lot of business with the home builders. And he used to say, as the construction industry goes, so goes the economy. And, you know, I’m kind of, I remember that. I remember when the whole savings and loan crisis happened. And it happened first with the construction sector, the building sector slowing down. We’re seeing that right now for sure. Mortgage applications are diving. New homes, the new home construction is not increasing because of these interest rates. and rates on a loan, and then that trickles down. I mean, the guys that frame the homes, the construction workers themselves, the construction workers spend at the restaurants, at the malls, on Amazon, etc., they travel. spend money, and he always used to say, as the construction sector goes, so goes the market, or the economy. So we’ll see if old Marv Gunderson was right, the late Marv Gunderson, and if this slowdown in the construction, building, mortgage application, home building sector eventually leads to a downturn in the economy. Now, the Fed doesn’t want that to happen. That’s why they’re cutting rates. But at the same time, this stuff is cyclical, and there’s not a lot you can do to change those cycles.
SPEAKER 06 :
Well, and the longer you’re above the quote-unquote inrestrictive, as the Fed always talks about restrictive monetary policy or easy monetary policy, the longer you stay in that restrictive realm, The slower business and particularly things that you need to use debt for, particularly investment, construction, whether it’s cars or durable goods, big purchases. The longer you’re in that restrictive territory, the more headwinds, right, that continue to build. And over time, right, it’s going to… Trickles down. Right. Slow down and slow down even more.
SPEAKER 05 :
And the construction sector, I mean, is a big part of our economy. I mean, I don’t care if it’s road building, building cranes downtown, putting up new buildings, home builders, apartment builders. Road improvements. It’s all very important to our economy. Okay, now we’re going to watch the employment very closely due to this, obviously. Private employment came in less than expected, but $122,000. We’ll get the real jobs number on Friday. the non-farm payroll so you could say well that’s that’s a little bit of a downward move in employment but at the same time the weekly initial jobless claims which come out a day early this week because of tomorrow being a one-time holiday i don’t know if they’ll make it a full-time every year holiday i doubt that but Who knows? Initial jobless claims decline, which is good.
SPEAKER 1 :
201,000.
SPEAKER 06 :
Pretty low. It’s interesting. You’ve got a mixed bag because you’ve got, of course, weekly jobless claims were much less than expected. And, of course, on the flip, which is good for employment, not as great for interest rates. But on the other side, with ADP, with that coming in less than expected in terms of job gains, That’s, you know, kind of certainly should help interest rates get down. So it’s a bit of a mixed bag, and it’ll be interesting to see what that non-farm payrolls number is on Friday.
SPEAKER 05 :
Yes. And, you know, I mean, at the same time, you know, you’ve got a very pro-growth president administration coming in in 12 days. And we’re already getting some pretty big commitments from foreign countries. I got that commitment yesterday on the guy from the United Arab Emirates to build all those data centers in Texas. And Georgia’s also getting a lot of data centers. That’s construction, baby. They take a lot of workers. And power. And nuclear power, maybe. We’ll be right back. And welcome back here to the second quarter of today’s Best Docs Now show. Well, it seems like any kind of rally, which we had early in the day yesterday and had a little one this morning, seemed to be met with selling. And now the Dow is down 183, and the NASDAQ, which was up a little bit, is now down 89 points. And we’re going to get to the quantum sector here in a moment, which kind of received a knife in the heart, it seems like, from Jensen Wang. Mortgage applications down as rates soar. which is just an add-on to what we were just talking about, you’ve got the 30-year up around 7% right now. So, I mean, if you’re in the mortgage business, that is just horrible. news, and it’s been horrible. And it’s been there for a long time.
SPEAKER 06 :
I mean, how long have we been? Look at that chart. How long have we been at around that 7% mark? I mean, you talk about being at that price for that long, right? I mean, folks who are waiting to buy a house or just the amount of house that someone can qualify for is diminished. I mean, when you’re there over that long term, that’s that – Long-term slowing and new home builders can only provide that gap, right, because they were doing some fancy incentive. Right, and they can only do that for so long, right?
SPEAKER 05 :
So that’s tough. You know, it’s especially tough on young people that want to buy a home. They missed out on that. Well, we need more houses. Yeah, and we need more houses.
SPEAKER 06 :
That’s a problem.
SPEAKER 05 :
But you look at that, many of them got in at 3%. Those days are long gone. Now you’re at 7%. That makes a huge difference in those monthly payments. Well, Trump is considering declaring an economic emergency to bolster the tariff program. He’s basically going to make tariffs a core of his trade policy. He’s even going to use it maybe to get Greenland, right? He’s after Greenland. He wants to buy Greenland. You know, I couldn’t figure that out.
SPEAKER 06 :
I feel like we’re playing Risk. I feel like we’re playing Risk. Remember Game of Risk and Greenland was its own little thing over there?
SPEAKER 05 :
Yeah, Greenland’s a big mass. Okay, now I figured it out why. Apparently Greenland has a lot of rare earth minerals up there underneath whatever the snow. I thought maybe he wanted to build a golf course in another Miralago, Greenland. acres or something but no it’s has something to do with strategically where it’s located and also the minerals that it has rare earth so anyways uh he’s going to declare possibly a national economic emergency which would authorize him to manage imports imports coming in from other countries during the emergency now he does a lot of job boning just to position himself in the negotiations. You know, if you’re really worried about tariffs coming down on you, you’re going to start to be more cooperative on your end of the deal. art of the deal yes now the other thing i see beside rising interest rate oil 74 a barrel uh you know the oil stocks uh look pretty good some of them uh we added to one of our positions yesterday in that space uh we had a position that we i liked it i i initially ate it uh They buy in the incubator portfolio. Then I bought it in the emerging growth portfolio. Now I’ve added it to the ultra-growth portfolio, one of the great stocks of the last decade. Don’t give the name out. That’s a good one, man. That’s special. And I had a hard time getting a position. I had to work with the Schwab trader most of the day. to get a position in that thing. It trades a little bit on the thin side, but as far as I know, it’s in the S&P 500 now, and that should help it. So anyways, oil has been rising $74 a barrel. We haven’t seen that in quite some time. That’s going to start showing up in the inflation numbers. And natural gas has also moved up with this cold wave that’s sweeping across America right now. Danish stocks mixed. It is Denmark that has, but Greenland is autonomous. I mean, they could make their own decision. But Denmark does have the rights, a territory. It’s a territory. Greenland is a territory of Denmark. Besides threatening tariffs on Denmark, Trump also questioned Denmark’s legal authority over Greenland. People really don’t know if Denmark has any legal right to it, but if they do, they should give it up because we need it for national security. Strong arm in Denmark. Well, you’ve got some important companies in Denmark, including Novo Nordisk and isn’t ASM Lithography. And, you know, one of the… Or ASMO.
SPEAKER 06 :
Isn’t that Dutch? Is that Netherlands? I can’t remember which one.
SPEAKER 05 :
They’re close to each other geographically.
SPEAKER 06 :
Yeah, geographically they’re close.
SPEAKER 05 :
Denmark and… Yeah, Denmark has a couple big companies. So now… It’s Norway with Equinor, right? Yes, Norway. And, you know, look, there’s something going on with this Greenland deal. I like to listen once in a while to Charlie Kirk when I get a chance. And he couldn’t do his show yesterday. I’m on the same station with Charlie Kirk on a lot of these Salem stations. Charlie couldn’t do his show yesterday because he was in Greenland. What in the world is going on? Now I read that Trump’s son, Don Jr., is in Nuuk, N-U-U-K, Greenland. Bring your mukluks, and who knows where this all ends up. Okay. And some, what’s the fish, like the marinated fish?
SPEAKER 06 :
Yeah, marinated fish or something, yeah.
SPEAKER 05 :
So here’s my question. Did Jensen Wang put a knife in the heart of the quantum computing sector? Computing stocks slump after NVIDIA’s CEO sees use many years away. Do you know how many years away he said it is? 20. He says most of us in the industry believe that we’re out there on the horizon. On the long end, 30 years maybe. On the short end, maybe 10 years. So that is just absolutely sinking. He believes that very useful quantum computers are over a decade away. which you know what i mean that really honestly may have put a knife in the heart of righetti and arc at quantum and d wave quantum and ion q and cube ubt and qbts and the quantum etf d wave i don’t know if these stocks are going to bounce but man they’re down thirty to forty percent uh… here today and it was uh… a very exciting sector you know And quantum computing was up over 1,880%. Over the last year, Regetti was up 1,500%. And along comes Jensen Wang and Bang, a knife in the heart, saying that these things are way out there. I said it yesterday.
SPEAKER 06 :
And that’s that long-duration. And you’ve said it since they started taking off. And it’s the epitome of long-duration stock and long-duration play. And interest rates, right, are going to have the biggest effect on that. And I think what we’ve seen lately is interest rates are having a big effect on the valuations that you’ve mentioned.
SPEAKER 05 :
Yes. So, anyways, if you’re wondering why these stocks are getting taken to the woodshed big time today, it’s because of, thanks, Jensen Wayne. He must have a short position in them. But, you know, he’s probably speaking truth. I trust the guy will 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 01 :
And welcome back here to the second half of today’s Best Stocks Now show.
SPEAKER 05 :
Well, there’s a lot of deal making, I guess, taking place at CES. AMD has made an investment in a little stock that’s making a move today. The name of the stock, A-B-S-I. A-B-S-I is up 7.5% now. They’re in the AI drug business, trying to create drugs using AI power. So that one, $20 million investment, AMD, in a biotech.
SPEAKER 06 :
It’s interesting because NVIDIA has been doing that, so that’s kind of interesting. They’re finally kind of getting in the mix with some of these announcements too.
SPEAKER 05 :
Now, I think there’s a lot at CES about the robo-taxi and the autonomous driving, which is a breakthrough that hasn’t happened. Now, I don’t see that out there 20 years on the horizon, like Wang says quantum computers are. But Pony is one that has been in the news here recently. Pony AI expects big breakthrough with autonomous driving in Hong Kong. which is to provide driverless transportation at the Hong Kong International Airport, which is one of the world’s busiest airports.
SPEAKER 06 :
And it’s one of the most, I mean, in terms of population density, right? It’s a pretty dense populated area, so it’ll be interesting to see how these things work. I was listening to somebody this morning, and they were talking about uh he was talking about his daughters and he was he said uh you know he’s he was he said he was hoping that uh he said he’s hoping that his young daughters never have to drive so well yeah maybe i don’t know about that from a safety standpoint i mean as long as it works right that’s the you know that’s the key we all gotta we will have to be confident in it um you know there’s certainly some privacy concerns in terms of tracking where folks are going um We saw that with the Cybertruck and the incident in Las Vegas in front of Trump Tower. But, you know, it should, I mean, overall, right, I mean, one of the biggest risks that we all take every day is hopping in our car and driving somewhere. Yeah.
SPEAKER 05 :
You know, you’d think you’d be safer in a driverless car. You would think. But, you know, as I sat in the back of an Uber going from LaGuardia to Times Square, I thought, how would a driverless car, or maybe things would have been more orderly. I don’t know. But you’ve got to remember you’re mixing driverless cars with driver cars. And those taxi cab drivers, they’ll go through a space. You’re thinking, I don’t know that he can get through that. I don’t know. God, we got through it. You know, it’s just, wow, that’s crazy. And people are making turns and pedestrians are taking advantage of the stop traffic to dart through it. It’s just all nuts. Lots of jaywalking.
SPEAKER 06 :
Yeah, lots of jaywalking in New York City used to be fined for that and get a ticket. Not anymore. They don’t do that anymore.
SPEAKER 05 :
The Uber driver was very unhappy about that. He said, you know, this didn’t used to go on, but they loosened the laws on jaywalking because they found out that it was mostly the black population that was paying up the fines. And they felt like it was a racist policy to discourage and ticket jaywalkers. And that’s what you got in New York City. Chart Industries is one to keep an eye on. Chart Industries announces a goods and service agreement with Exxon Mobil. You know, the thing I like about Chart Industries, which we do own, G-T-L-S, Chart is like a shovels and picks and shovels type company to not only liquid natural gas, but also to the nuclear industry. So, you know, as those things, and look at charts. If you look at chart industries, their earnings growth, 26% a year. They’re looking for 56% this year and 35% next year. That’s some really phenomenal growth there on chart industries. And I’ve seen a lot of other people out there that I respect talking up. chart industries the symbol is g t l s and uh it is a 8.5 billion dollar company so it’s a small cap out of georgia i’ve never heard of this city ball ground georgia
SPEAKER 06 :
I haven’t looked that up. We’ll have to ask Jennifer that one. We’ve been through there a good bit, but never ran across that one.
SPEAKER 05 :
Okay, now let’s see. I saw that NFL football, there’s been a trend this year of favorites winning. Favorites, okay, that’s not good for the gambling industry. And Flutter actually lowered their expectations today. Because of this, they’re not on the winning side as many of the bets as they usually are, and they lowered their expectations, but I do see that the stock is up 1.4% after that announcement. It’s affecting both Flutter and DraftKings. You know, of all the things I’ve ever, you know, I used to get in the football pools, and I used to win the football pools all the time when my mother at work. I bet you were a beast in those.
SPEAKER 02 :
Yeah, I was 17, 16 years old.
SPEAKER 05 :
And my mother worked for a big insurance company, and they had a pretty sizable football pool every week. It was NFL and college, and I used to win that thing about every third week or so. I made a little living off of that thing as a 16-, 17-year-old. And hitting the pick six, the 5’10”, at Caliany Racetrack in Tijuana when I was 18 years old.
SPEAKER 06 :
They thought your mom was just a football guru. Yeah.
SPEAKER 05 :
She thought it was her. They thought she was the one picking Auburn over Kentucky. But anyways, you know, I would say of all the things that I ever tried, I would say NFL is the most unpredictable beast of all. Oh, yeah. It’s just unpredictable, you know, on any given weekend, as the saying goes. But I guess this year it’s run more to form. There seems to be some real bad teams out there, you know, like the The Patriots and the Browns that you could just count on losing.
SPEAKER 06 :
You’ve got a couple of playoff games this weekend. I think Baltimore is like a 10-point favorite. Another team, I forget who it is, like a 9.5-point favorite. So you’ve got still some big spreads this week.
SPEAKER 05 :
So the casinos are getting hurt. Do you feel sorry for them? No, not really. The DraftKings and the Flutter and the Caesars Palace. There’s always next season for them. Yeah, they’ll be all right. Okay, now here’s another one that’s jumping today, VIR, which is a biotech. We’re going to call this the stock of the day. We had one yesterday with pancreatic cancer. Today, Veer Biotech up 64% after phase one data for Sanofi partnered cancer drug technology. You know, I love to see them making progress on cancer. I mean, that’s really the one.
SPEAKER 06 :
Yeah, I like when you highlight these. What you had yesterday was pancreatic cancer. There was one where they were making some progress there, and that stock was getting a boom.
SPEAKER 05 :
Yes, and, you know, I just have to give a shout-out to a friend of mine out in the San Diego area. He used to come to my workshops a lot. He was retired, and he was a software programmer. And he actually wrote all the macros that I use in taking my data from my database in the app and putting it into a spreadsheet today. I talked to him last week. I’ve known him for 20 years. I said, Will, your macros still work. I use them every single day. And the poor guy, he has lung cancer. And he’s had a portfolio with us for quite some time. I manage it for free because of all the work he did for us and everything. He made a couple trips up with me to see Douglas up in the Bay Area to help develop. And, you know, he was put into hospice yesterday. And that’s a call, you know, to talk to somebody. He says, Bill, I’m going into hospice. It’s like, you know, this is probably we won’t talk again. That’s really a sad thing. Anyways, just a shout-out to my friend out there in Carlsbad, Will, who entered into hospice yesterday. Really a great guy from San Diego State, San Diego State University, retired computer programmer. Okay, the last thing I want to mention here, Trump did a tirade against the wind, wind energy. He lashed out against windmills. I don’t know what he’s got against windmills. But, you know, I would hate to see them out there, you know, off of New York where the lobster, the Boston fishermen. They’re deteriorating. Lobster. Yeah, I mean. I don’t think that it’s a very effective way of getting the juice that we need. When we come back, we’re going to look inside the market. You’ve got a big sell-off in Bitcoin as we’ve got a little bit of risk off in the market right now going on. Are we headed into a correction? Well, it looks that way, but you’d have to bust a couple of levels in the indexes. We’ll talk about that, too, in the last segment of the show. And welcome back here to the final segment of today’s Best Stocks Now show. Well, we are now in earnings season. And we’ve actually had a few come in. But next Thursday and Friday, we’re going to get some of the big banks reporting. Then we’re officially in earnings season. I was quite surprised. Now, this is on the positive side of things right now. Then we’ll give the negative side of things. Let’s do the negative. Let’s get the negative out of the way first. The interest rates are what are hurting us right now. It’s the bond market. It’s interest rates at 4.70. If they stop here and start easing up, then we may not go into a correction. But there’s definitely some technical numbers here, Barry. with your technical analysis. If we break below, there’s a number out there. I’ve got it written down here.
SPEAKER 06 :
I like how you highlight those. I like how you mentioned in your note this morning in terms of you’re putting those numbers on the chart.
SPEAKER 05 :
And so we already are in a bit of a correction. I mean, the Dow is down about 4 or 5%, I would say, from its high. An all-time high. Yes, but it could easily go down another 4 or 5% if it breaks the number here that I’m watching very closely. You have had a trend reversal. The uptrend in the Dow, the line that I had drawn that began last July, it went on a nice run until early this year. Let’s see, that run ended in about mid-December. And then it actually broke that uptrend, okay? And so you’re in a secondary downtrend within a primary uptrend. you’re in a very small correction right now. But there’s a couple numbers that if it breaks below those, then you might have to take a little more defensive action. just to ease the shock absorbers because you could have some more downside risk. I kind of laid the groundwork for a pullback in my first article of the year on the current valuation of the NASDAQ. It’s quite high, extremely high. It’s gone a long ways over the last two years. And then you add that into the rising interest rates, which are going to make that multiple look even higher yet. And that is kind of the concoction, the combination of events that bring about a sell-off and a correction in the market.
SPEAKER 06 :
Then we’re going to get the Fed minutes at 2 o’clock this afternoon, which could introduce, you know, a little bit of potential rate volatility simply because, you know, it was kind of an interesting meeting where it was kind of that, I remember Powell’s speech kind of tanked the market and you had essentially, you know, they did one more cut and they kind of, you know, kind of signal that they’re going to pause for January. It should be interesting to see kind of some of the discussions, some of the vote, you know, around what was, you know, what was happening behind the scenes there.
SPEAKER 05 :
Well, now that’s the short-term news, okay? The longer-term news, however, I couldn’t believe it when I saw that, uh, There’s already some estimates out there for 20, what is this, 2025? 2025, yeah. We have solid estimates for this year. We have pretty good estimates. And there’s now even an annual EPS estimate out there for the S&P 500 for 2027, okay? And if you look at the chart of earnings, 2009, you’re down around $60 per share in S&P 500 earnings. If things go the way the analysts think, we could be hitting almost $350. Remember, this year is about $250. $250 is where we’re going to be. 2024, which we don’t have in yet, we’re going to end the year at about $247. That’s where 2024 is going to be. This year, we’re looking for somewhere in the $270. Then it goes up to $310. Then it goes up to $340. So long term, things still look very, very optimistic, and you have a very pro-business administration coming in. But in the short term, there’s going to be some major bumps in the road, some pullbacks. And, of course, you know, something could happen to break this earnings trend. But right now, the earnings trend is what the market is trading on. And if you’re looking out over this year, next year, to earnings, I’m seeing a lot of 7,000 estimates on the S&P 500 based on these solid earnings estimates. expectations seven thousand i would say that the average for this year is somewhere in the sixties yeah maybe almost seven thousand For this year or so, we’re at 5,900 right now. But in the meantime, we could be looking at a correction here because we need a correction. We need some buying in the bond market. The bond market chart, I use AGG. It is up a little bit today, but it needs to halt this downtrend that it’s been in. The bond market is down about 7-8% since last September as interest rates are now pushing 4.70. which is the high for the last 12 months. And let’s hope that it’s now hit that high. Let’s get that over with, and let’s start backing down from that high. So you’re kind of in between. You’re kind of in flux right now with the high rising rates colliding with a high P.E. multiple, but the earnings picture looking very, very favorable. over the next couple of years so there you go take all that into account how do i get through times like this and manage it one stock at a time one stock at a time one day at a time and you just can’t make big blanket calls on the market I do a lot of little individual and small decisions on a daily basis, but they’re definitely very much influenced by what I see in the macro picture of the market. Okay, if you want to try to take the worry off your shoulders and just hand it off and let us worry about it, we run a daycare center for distressed stocks here. Give us a call. Set up an appointment at 855-611-BEST. 855-611-BEST. Put together a financial plan. And put not only, you know, valuations to work for you, but also the momentum and the technical analysis side of things, which obviously is very, very time consuming. And if you just want to see how it all works and comes together, you can get four free weeks of the live buying, investing, slash trading subscription and my commentary on the market on it several times throughout the day. Go to GundersenCapital.com. GundersenCapital.com. Have a great day, everybody.
SPEAKER 03 :
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.
