cover of episode Talking Markets with Sevens' Report Tom Essaye

Talking Markets with Sevens' Report Tom Essaye

2024/10/21
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Tom Essaye: 当前市场主要关注经济增长,其他因素都是次要的。投资者应密切关注经济增长指标,例如每周失业救济金申请人数、失业率、ISM制造业PMI和ISM服务业PMI。如果这些指标出现异常变化,可能预示着经济下滑,投资者需要谨慎。市场估值较高,但主要由积极因素支撑,如果基本面开始动摇,市场将变得脆弱。短期市场波动是正常现象,无需过度解读。市场已经计入了特朗普胜选的可能性,选举结果对市场的中长期影响可能有限。投资者对经济增长的乐观情绪可能过于乐观,低波动性、高质量的板块可能在选举后表现更好。长期债券具有吸引力,美国国债市场在全球范围内仍具有优势,短期内对美国财政状况的担忧被夸大了。对未来十年美国股票回报率低的预测不应被过度重视,因为这基于对未来盈利增长和市场估值倍数的假设。中国和欧洲的股票市场具有吸引力,中国刺激措施可能推动股市上涨,欧洲市场可以提供多元化投资机会。贵金属价格可能继续上涨,但波动性较大。 Lauren Rublin: 引导讨论,提出问题,总结发言。 Ben Levisohn: 就公司收益、个股表现(通用汽车、特斯拉、波音、Verizon、UPS)以及市场动态发表评论。当前财报季表现强劲,超过预期公司比例高,销售额也表现良好。通用汽车公司(GM)今年表现优异,股价上涨,回购股票,但汽车定价压力仍是关注点。特斯拉公司(Tesla)股价今年下跌,投资者关注其增长前景和新款低价汽车的发布。波音公司(Boeing)面临诸多问题,包括罢工、飞机交付延迟和质量控制问题,投资者关注其解决问题的能力。Verizon 和 AT&T 的股价表现落后于 T-Mobile,投资者关注其无线业务和 iPhone 销售情况。UPS 公司面临工资上涨、竞争加剧等问题,其股价表现不佳。Humana 和 Cigna 可能合并的消息并未被市场积极看待,医疗保健领域投资目前面临挑战。

Deep Dive

Key Insights

What is the Sevens Report and what does it provide to investors?

The Sevens Report is a daily macroeconomic research publication that provides plain English analysis of stocks, bonds, commodities, currencies, geopolitics, and Federal Reserve behavior. It aims to be a one-stop shop for financial advisors and individual investors, offering insights at the start of each trading day.

Why does Tom Essaye emphasize that the market is all about growth?

Tom Essaye emphasizes growth because if economic growth falters, it could lead to a significant market downturn. He highlights that the Federal Reserve's rate cuts won't be enough to prevent a slowdown if growth weakens, making growth the primary focus for investors to avoid potential market declines.

What are the key indicators Tom Essaye uses to assess economic growth?

Tom Essaye focuses on four key indicators: weekly jobless claims, the unemployment rate, ISM manufacturing PMI, and ISM services PMI. These metrics provide a clear picture of economic health, with jobless claims and unemployment signaling labor market strength, and ISM PMIs indicating expansion or contraction in manufacturing and services sectors.

What are the warning signs for a potential economic downturn according to Tom Essaye?

Warning signs include weekly jobless claims consistently above 260,000, an unemployment rate rising above 4.5%, and ISM manufacturing and services PMIs dropping below 50 for multiple months. These indicators suggest weakening labor markets and economic contraction, which could lead to a market decline.

How does Tom Essaye view the current market valuations?

Tom Essaye believes the market is expensive, trading at nearly 22 times forward earnings, which is at the upper limit of reasonable valuations. However, he notes that the market's gains are supported by solid growth, Fed rate cuts, and strong earnings, making the high valuations mostly justified for now.

What is Tom Essaye's outlook on the 2024 U.S. election's impact on markets?

Tom Essaye believes the market has aggressively priced in a Trump victory, but the election remains extremely close, with key states like Pennsylvania and Wisconsin likely deciding the outcome. He expects short-term volatility around the election but doesn't foresee a substantial negative impact on markets in the medium or long term, given the likelihood of a divided government.

What are the key takeaways from the Q3 2023 earnings season so far?

The Q3 2023 earnings season has been strong, with 83% of S&P 500 companies beating expectations, above the recent average of 79%. Sales have also been solid, with 63.4% of companies beating sales estimates. Earnings are pacing for 4% growth, potentially reaching 7%, and corporate leaders are showing increased optimism, signaling a reacceleration in earnings.

What are the challenges facing Boeing, and what needs to happen for the company to recover?

Boeing faces significant challenges, including resolving a strike, addressing quality and culture issues, and managing its growing debt. The company needs to focus on improving production quality, increasing plane deliveries, and restoring investor confidence. The new CEO has a tough task ahead to stabilize the company and regain market trust.

What is Tom Essaye's view on the bond market and U.S. Treasuries?

Tom Essaye is bullish on long-term bonds, believing the bond bear market post-pandemic is over and yields will trend lower. He argues that despite concerns about U.S. debt and deficits, the U.S. Treasury market remains the most liquid and attractive safe haven for global capital, making short-term worries about bond market risks overdone.

What is Tom Essaye's perspective on foreign stock markets, particularly China?

Tom Essaye finds foreign stock markets attractive, especially China, due to extreme stimulus measures by the People's Bank of China aimed at boosting the stock market. He suggests that Chinese stocks, represented by ETFs like FXI, could benefit from this stimulus. He also recommends diversifying into European markets, which outperformed the U.S. last quarter and could do so again.

Chapters
This chapter explores the market's focus on growth and the key indicators used to assess it, including jobless claims, unemployment rate, and ISM manufacturing and services PMI. The discussion emphasizes the importance of avoiding a substantial downturn by carefully monitoring these indicators and their potential dissonance.
  • Market is all about growth; other factors are noise.
  • Key indicators to watch: jobless claims, unemployment rate, ISM manufacturing PMI, and ISM services PMI.
  • Consistent rise in jobless claims above 260,000 and unemployment rate above 4.5% signal potential weakening of growth.

Shownotes Transcript

Barron's Senior Managing Editor Lauren R. Rublin and Deputy Editor Ben Levisohn speak with Tom Essaye, Founder and President of Sevens Report about the outlook for financial markets, industry sectors, and individual stocks.