Stocks are trading lower this morning after disappointing earnings from JNJ and a downgrade of Goldman Sachs by Meredith Whitney. JNJ repeated the trend that we’ve seen in recent earnings reports where revenue were lacking. Shares are trading down by over 2%. A prudent downgrade of Goldman also has investors worried about the market’s overall valuation. The PE expansion over the course the last 6 months is one of the fastest on record.
In other news the Rebook and ICSC both posted year over year gains. The Redbook came in at 0.6% while the ICSC came in at 1.0%. The consumer appears to be gaining to a little traction over the last few weeks. This bodes well for tomorrow’s Commerce Department report on retail sales.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.