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A recent report from Trajan Wealth's Chief Investment Officer, Udayan Mitra, CFA, offers perspectives on the recent market returns.
PHOENIX - Californer -- The month of July marked the beginning of 2Q 2022 earnings season for Corporate America. Bell weather tech companies like Apple, Microsoft, Google-Alphabet, and Amazon led the way with strong year-over-year gains. In light of recent economic troubles, it is impressive how stocks were able to rebound so quickly from a sizable market drawdown in June and one of the worst first halves of the yearon record.
Reflecting on the turnaround, it is important to remember that accurately predicting short-term returns is impossible. In the short-term, group of investors and speculators react to every piece of information of varying levels of relevance. Over time however, the true value of an asset is predicated on its ability to generate and grow cash earnings or free cash flows, with weight being ultimately underpinned by profits/net cash flows.
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Key points:
About Trajan Wealth:
Trajan Wealth LLC formed in 2012, was founded by CEO Jeff Junior. Before his 20+ years in the financial services profession, Jeff Junior was a United States Marine Corps member. Jeff continues to serve his clients and employees with the utmost service, respect, and attention to detail.Udayan Mitra, CFA, came to Trajan Wealth with over two decades of experience in the investment management industry. He earned a Bachelor of Science degree in Economics from the London School of Economics and an MBA in Finance from Rice University.
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For the full article: https://trajanwealth.com/blog/july-2022-market-review/?utm_source=2060&utm_medium=PR&utm_campaign=Wealth-content-August2022
For more information on all the different services offered or to schedule a complimentary consultation, visit https://trajanwealth.com or call 1-800-838-3079
Disclosure: *Investment advisory services offered through Trajan Wealth, LLC, an SEC registered investment advisor.
Reflecting on the turnaround, it is important to remember that accurately predicting short-term returns is impossible. In the short-term, group of investors and speculators react to every piece of information of varying levels of relevance. Over time however, the true value of an asset is predicated on its ability to generate and grow cash earnings or free cash flows, with weight being ultimately underpinned by profits/net cash flows.
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Key points:
- The Federal Reserve's favorite measure of inflation, the Personal Consumption Expenditure Deflator (PCE), continues to run persistently higher than the FOMC's 2.00%-2.50% target rate—however, it seems tshortages will ease in many key commodities soon.
- Momentum for corporate earnings can only be maintained if there is a stable economic environment, which seems unlikely at this point as high geopolitical tensions threaten global growth rates.
- We continue to advise investors about their need for sound portfolio management and caution them against day trading practices which can contribute to unnecessary losses without sustainable returns over time.
About Trajan Wealth:
Trajan Wealth LLC formed in 2012, was founded by CEO Jeff Junior. Before his 20+ years in the financial services profession, Jeff Junior was a United States Marine Corps member. Jeff continues to serve his clients and employees with the utmost service, respect, and attention to detail.Udayan Mitra, CFA, came to Trajan Wealth with over two decades of experience in the investment management industry. He earned a Bachelor of Science degree in Economics from the London School of Economics and an MBA in Finance from Rice University.
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For the full article: https://trajanwealth.com/blog/july-2022-market-review/?utm_source=2060&utm_medium=PR&utm_campaign=Wealth-content-August2022
For more information on all the different services offered or to schedule a complimentary consultation, visit https://trajanwealth.com or call 1-800-838-3079
Disclosure: *Investment advisory services offered through Trajan Wealth, LLC, an SEC registered investment advisor.
Source: Trajan Wealth
Filed Under: Financial
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