PLUMB LINE INSIGHTS

Despite tepid earnings growth for the average company in 2019, broad equity markets provided very attractive returns. To the casual observer, public company earning’s growth, GDP growth and stock prices appear to have decoupled. In 2018, the stock market declined despite significant earnings growth for the underlying major indices. In 2019, the stock market soared despite minimal growth in these underlying earnings. 

The third calendar quarter of 2019 was generally positive for investors, but less so than the previous two quarters. Equity markets were mixed as the S&P 500 advanced 1.7% and the MSCI EAFE ex US index showed a decline of 2.5% for International equity markets.

Have you noticed that interest rates are very low and bond prices volatile?

Investing in the "new" economy. What's driving the change?

Does international diversification really reduce risk? 

Tom Plumb addresses the belief that over time value investing outperforms growth investing.

Tom Plumb discusses how technology is impacting the world we live in. Big data and the fourth industrial revolution are changing how everything is done.

We believe stocks are the best leading indicator for the economy, not the other way around. Valuations don’t cause or predict market corrections.