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.
![Cullen Roche](https://pragcap.com/wp-content/uploads/2022/01/Headshot2022-1-144x144.png)
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.
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