Market Commentary
Rising Rates And Stock Market Performance
Submitted by Flynn Zito Capital Management on March 8th, 2021The 10-year Treasury yield continues to climb higher, but remains low by historical standards. Still, the size of the move since July 2020—and the more recent acceleration—has some market participants worried about the potential impact on stock markets if rates continue to rise. Historically, the S&P 500 Index has endured extended periods of rising rates well.
Here Comes The Earnings Boom
Submitted by Flynn Zito Capital Management on March 3rd, 2021Fourth-quarter earnings season is in the home stretch, and it’s been a good one. After raising our 2021 earnings forecast for the S&P 500 Index in our Weekly Market Commentary on February 8, our upgraded forecast may now be too low, based on what we have learned from corporate America during the three weeks since.
Here Comes The Earnings Boom
Submitted by Flynn Zito Capital Management on March 1st, 2021Fourth-quarter earnings season is in the home stretch, and it’s been a good one. After raising our 2021 earnings forecast for the S&P 500 Index in our Weekly Market Commentary on February 8, our upgraded forecast may now be too low, based on what we have learned from corporate America during the three weeks since.
Sustainable Investing Year In Review
Submitted by Flynn Zito Capital Management on February 22nd, 2021Increasingly more people realize that their sustainability concerns can be address through their investments. As more investors embark on the sustainable investing journey—learn what it is, why one pursues it, and how to do it—assets into sustainable funds will continue and investors will have more choices from which to construct sustainable investing portfolios.
The Search For Income
Submitted by Flynn Zito Capital Management on February 16th, 2021Interest rates have risen steadily over the past six months but remain low by historical standards. That means the traditional high-quality bonds that many of us owned for decades are not doing the job for investors looking for income, while the potential for interest rates have risen steadily in recent months brings more risk in the bond market than has been evident historically.
Raising GDP And Stock Market Forecasts
Submitted by Flynn Zito Capital Management on February 8th, 2021Markets Shrug Off Debt Levels
Submitted by Flynn Zito Capital Management on February 1st, 2021Small Caps Still Solid
Submitted by Flynn Zito Capital Management on January 25th, 2021Small caps have had an incredible run since the Russell 2000 Index bottomed on March 18, 2020, returning 119% compared to the S&P 500 Index’s 60% return over the period. Will small cap outperformance continue in 2021? The early stages of this business cycle may help determine the direction for small caps as well as earnings per share, stock valuations, and technical trends.
Earnings Recession Is Likely Over
Submitted by Flynn Zito Capital Management on January 19th, 2021This earnings season likely will be the last of the earnings recession. After year-over-year declines in the first three quarters of 2020, the fourth quarter likely will make it four in a row. Looking ahead, earnings are likely to grow solidly in the first quarter 2021 and throughout the year, which we think will enable stocks to grow into their lofty valuations.