The health of the U.S. economy has kept going strong, with earnings and growth winning out over the war of words (and taxes) between several nations.
The modest stock market rally has left the Dow up 5.7% YTD, with President Donald Trump promising “More good news is coming!” This stretch of the rally can be mostly attributed to solid economic numbers. The U.S. economy has enjoyed +25% corporate earnings growth, a 4.2 percent GDP gain in the second quarter and an 18-year high in consumer confidence. Read more on that here.
Tesla had a wild month. First the notorious CEO Elon Musk tweeted that he was considering taking the company private, and even suggested that “funding was secured.” This turned out to be a fabrication, as he proceeded to hire Goldman Sachs as an advisor on the deal (something unnecessary if such a deal were already “secured”.) Musk then backtracked, and said that after discussing the matter with his board, had decided keeping Tesla as a public company was in the shareholders’ best interests. The SEC has issued a subpoena to investigate Musk’s potentially misleading Tweet. Such a privatization deal would’ve cost roughly $70 Billion in financing. You can read more here.
Tech has continued to lead the way to growth in the U.S. economy, with Amazon breaking $2,000 per share for the first time. Amazon will only need to add $50 per share to match Apple as a Trillion dollar company. Amazon shares have been surging all year, up 70% YTD, and doubling over the past 12 months. Amazon’s P/E ratio sits at 182.52, whereas Apple’s is a mere 19.70. You can read more here.
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– KIERNAN EASTON, PRIVATE WEALTH MANAGER AND PARTNER AT DYNAMIC WEALTH SOLUTIONS
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