Beyond Markets

The S&P 500 index made new highs last week, and results​ from the Q2 US earnings season have been amazing. With 90% of companies having reported, the blended earnings growth (actuals for reported and estimates for companies yet to report) is 11.8%, versus the consensus of 4.9% y/y earnings growth estimated in June. Yet strangely, the percentage of S&P 500 stocks trading above their 50-day averages has fallen from 80% in early July to 56%. That means a smaller number of stocks are taking the index up today than was the case then. 

​We should never take averages​ as guaranteed outcomes for future performance. But for what it’s worth, August has historically been a “neutral” month on average, with a return since 1950 of zero. And September is the only month since 1950 with a negative average return.

What is Beyond Markets?

“Beyond Markets” by Julius Baer is a series featuring conversations with experts to share recent market developments, key insights, and strategic inputs from around the globe. In each episode, we cut through the noise to offer practical advice and macro research on today’s shifting economic and market landscape.
The information contained in this podcast is marketing material. Opinions expressed do not constitute independent financial/investment research, investment advice, or an offer to buy or sell securities by Julius Baer. Please refer to www.juliusbaer.com/legal/podcasts for important legal information prior to listening to this podcast.