About this episode
(8/1/23) Summer is in full-swing, and markets are matching the heat with extreme bullish sentiment. What is the cost of hedging your portfolio over time? No one believes a correction is coming (so it probably will). Companies are receiving no reward for beating (lowered) estimates; the number of companies achieving beats is declining. 3% - 5% correction in August should come as no surprise. Bullishness in S&P 500: Everyone can't wait to get in; wait for most-favorable risk/reward dynamic when market corrects. How to increase economic prosperity? Growing the economy, reducing debt. The current US Debt to GDP ratio is 180%! There is no easy fix for our debt problem. Pre-market commentary: Employment numbers and the 2023 Jackson Hole Central Bankers' confab is coming; why wouldn't the Fed hold firm at 5% rates when markets/economy seem to be doing fine? Pricing-in any rate cut could be premature. The dynamics of inflation, year-over-year measurement, and dis-inflation. Monetary normalization is far from complete: The risk still exists that the Fed will not pivot anytime soon. SEG-1: Markets Match Summer Heat SEG-2: No Reward for Earnings Estimates SEG-3: How to Increase Economic Prosperity SEG-4: Why Pricing-in a Rate Drop May Be Premature Hosted by RIA Advisors Chief Investment Strategist Lance Roberts, CIO Produced by Brent Clanton, Executive Producer -------- Watch today's show, on our YouTube channel: https://www.youtube.com/watch?v=t00ufC9aedY&list=PLVT8LcWPeAugpcGzM8hHyEP11lE87RYPe&index=1&t=4s -------- The latest installment of our new feature, Before the Bell, "Correction in August?" is here: https://www.youtube.com/watch?v=BoYkSwT_5OM&list=PLwNgo56zE4RAbkqxgdj-8GOvjZTp9_Zlz&index=1 ------- Our previous show is here: "Is the Bull Market Unstoppable?" https://www.youtube.com/watch?v=G3s_0JPku5c&list=PLVT8LcWPeAugpcGzM8hHyEP11lE87RYPe&index=1&t=2100s -------- Articles mentioned in this report: "Bullish Measures Are Getting Really Bullish" https://realinvestmentadvice.com/bullish-measures-are-getting-really-bullish ------- Get more info & commentary: https://realinvestmentadvice.com/newsletter/ -------- SUBSCRIBE to The Real Investment Show here: http://www.youtube.com/c/TheRealInvestmentShow -------- Visit our Site: https://www.realinvestmentadvice.com Contact Us: 1-855-RIA-PLAN -------- Subscribe to SimpleVisor: https://www.simplevisor.com/register-new -------- Connect with us on social: https://twitter.com/RealInvAdvice https://twitter.com/LanceRoberts https://www.facebook.com/RealInvestmentAdvice/ https://www.linkedin.com/in/realinvestmentadvice/ #InvestingAdvice #EarningsSeason #EarningsEstimates #LagEffect #Recession #Markets #Money #Investing