Podcast: Is The Market Detached From Reality?

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by: Tematica Research

The potential earnings expectations discrepancy between tax reform, GDP, and stocks

Coming off the holidays, entering 2018, and despite the disruption from snow bomb cyclone Grayson, Tematica's investing mixologists Chris Versace and Lenore Hawkins are back with a short recap on 2017 and discuss what market watchers are focusing on over in January.

This week brings the technology-infused CES 2018, an annual tradeshow that blurs the lines between our Connected Society and Disruptive Technologies investing themes. With a sense of humor, Chris and Lenore discuss several new technologies from 5G to haptic virtual reality (VR) that are poised to make headlines during the show and further transform our digital lives.

After the Martin Luther King holiday, 4Q 2017 earnings season gets underway and while the market is focused on tax reform-laden EPS upside to be had, Lenore and Chris offer a sobering take on what some of the potential shortfalls are that could weigh on both the economy and the stock market. Along the way, our mixologists discuss the yield curve, remind us about the monetary policy and the Fed, and share the view that quality - be it for a company's dividends or balance sheet - should remain a priority for investors.

Looking toward the end of January, the conversation shifted back to Washington and the expectation for President Trump to release his rebuilding U.S. infrastructure framework ahead of his January 30 State of the Union Address. From roads to bridges, tunnels, dams, airports to the electric grid and all that falls in between, the domestic infrastructure has increasingly become a sore spot as well as a drag on the economy.

As much as they are bullish on rebuilding our infrastructure and like the trend in recent non-residential construction data, Chris and Lenore point out some rebuilding hurdles that need to be cleared out before the machines are running, the rebar is laid and the concrete is poured.

Companies mentioned on this podcast:

  • Apple (NASDAQ:AAPL)
  • Alcatel Lucent (ALU)
  • AT&T (NYSE:T)
  • Dycom (NYSE:DY)
  • Ericsson (NASDAQ:ERIC)
  • FedEx (NYSE:FDX)
  • iRobot (NASDAQ:IRBT)
  • Qualcomm (NASDAQ:QCOM)
  • Nokia (NYSE:NOK)
  • T-Mobile USA
  • Universal Display (NASDAQ:OLED)
  • Verizon (NYSE:VZ)