According to Sevens Report, the two factors that could reverse the upward trajectory of valuations would be stalling economic growth and higher interest rates. Until those occur, the rally is expected to shoot up to “20 times earnings, which equates to about 3,500 in the…” Click here to read the full article.
“This rally now has a life of its own. I do want to caution that any pullback that occurs (and there will be one) likely will be a bit more painful than before and on the order of 5% to 10%, given how stretched the market has become…” writes Tom Essaye of the Sevens Report newsletter. Click here to read the full article.
“The geopolitical fear bid supporting the gains in the energy markets in the front half of the week vanished much quicker than most analysts anticipated…” says Tyler Richey, co-editor at Sevens Report Research. Click here to read the full article.
The Sevens Report’s Tom Essaye underscored the importance of the development, likening the killing of Soleimani “to a foreign government assassinating our Secretary of Defense and our Secretary of State. “Point being, this was significant action. Retaliation from Iran is expected and all…” he wrote, adding that a regional war wasn’t priced into the markets and could easily push the S&P 500 down 5% to 10% from a reaction to the spike in oil prices alone. Click here to read the full article.
“U.S./China trade talks are officially scheduled for October 10 and 11th and rhetoric from both sides remains positive ahead of the event. “At this point, a pretty comprehensive…” writes The Sevens Report’s Tom Essaye. Click here to read the full article.
In fact, the market seems to be worrying more about China and the state of the U.S. economy than impeachment, according to Sevens Report’s Tom Essaye. U.S./China trade remains the singular most important issue facing this market, and as long as markets have ‘hope’ of a U.S./China trade ‘truce,’ it’ll be hard to…” he writes.
“Futures are higher with most overseas markets thanks to positive trade headlines…” writes the Sevens Reports’ Tom Essaye. Click here to read the article.
And maybe that’s because there’s still so much uncertainty out there regarding trade? Yes, the U.S. has exempted more than 400 goods from tariffs, and come as both the two sides get ready for October negotiations. “On U.S./China trade, the staffer meeting in preparation for the October meeting will continue, and absent any ‘real’ news today any chatter that’s positive on…” writes The Sevens Reports’ Tom Essaye. Click here to read the full article.
“Bottom line for the Fed, if today’s events turn out to be net-hawkish, that will weigh on risk assets as investors remain overly optimistic about an aggressive easing cycle over the coming…” writes The Sevens Report’s Tom Essaye. Click here to read the full article.
Tom Essaye Quoted in Barron’s on May 31, 2019.
Investors have to consider what Tom Essaye calls the “worst case scenario.” In this case, the governments of Mexico and China decide to wait until the next election…click here to read the full article.
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