Archer 2022 Annual Outlook
January 5th, 2022
Much like the cartoon above, we are often warned about the political gridlock in Washington creating a potential economic disaster. However, it could not be further from the truth. It is actually more the norm than the exception. As we enter 2022 with hopes of more normalization, we must accept the fact COVID is here for another year at least. The difference is how we will learn to live with it. As far as politics go, we expect more...
Archer 4th Quarter 2021 Outlook
October 7th, 2021
“Inflation is taxation without legislation.” – Milton Friedman
The cartoon may have caught your attention, but I want to use it to explain what is happening and what is likely to happen in the market. We all know by this point that the Federal Government has begged, borrowed, and stolen to “juice” up the market. Whether you felt this was necessary during the pandemic or not, there are consequences to all of the spending in Washington. Our national debt...
Archer 3rd Quarter 2021 Outlook
July 7th, 2021
“Nothing gives one person so much advantage over another as to remain always cool and unruffled under all circumstances.” – Thomas Jefferson
Sunday, July 4th, marked the 245th commemoration of the adoption of the Declaration of Independence. Since then, the country has grown from 13 colonies and roughly 2.5 million people to 50 states and 14 territories with a population that exceeds 330 million. The economy has swelled to almost $21 trillion and economic output per person has risen by a factor of 30. Advances in public health have cut the child mortality rate from more than 45% to under 1%. More than 200 million people have at least finished high school, compared to 18 million in 1940. We’ve built...
Archer 2nd Quarter 2021 Outlook
April 8th, 2021
“There are two kinds of people who lose money: those who know nothing and those who know everything.” – Henry Kaufman
When looking at the stock market, we often look at earnings first and the stock market second. The reason is that the price of the market long-term is predicated by the earnings of the stock market. If companies were making zero dollars and forecasted to make zero dollars, then no one would invest in that company. If you look at the chart below, you will see the earnings and the expected earnings of the S&P 500, which is the 500 companies that make up the index that many people follow...
Archer 2021 Annual Outlook
January 6th, 2021
“Liberals have practiced tax and tax, spend and spend, elect and elect, but conservatives have perfected borrow and borrow, spend and spend, elect and elect.” – George Will (American political journalist, b. 1941)
The election has been completed and will begin to move into the rearview mirror. It appears that we will have a new President and likely a Democratic Congress. This may be exciting for some and create a sense of dire worry for others. We would like to dispel some of the myths of stock market returns with a Democrat Executive office combined with a Democrat controlled Congress. Remember, nearly all of the members of Congress have money invested in the stock market and real assets such as homes, vacation homes, etc. Like most, they want their assets and wealth to...