SPY: Don't Trust The Rise, Trust The Numbers

Aug. 23, 2022 9:36 AM ETSPDR S&P 500 Trust ETF (SPY)4 Comments
Davide Ravera profile picture
Davide Ravera
807 Followers

Summary

  • Aggregate earnings for the S&P 500 were more or less in line with expectations last quarter, and analysts expect +8% growth.
  • Today's market is at a forward price-earnings ratio of 18.4, which is higher than the historical average and contains much-unwarranted optimism.
  • For those with a lower risk profile, taking the last month's gain is better to increase the share of cash in the portfolio.

Man looking at currency trading app on his smart phone from his home office

Alistair Berg

Market ups and downs continue to be present, but the results of the leading equity instruments can undoubtedly be considered positive, given the context in which we find ourselves. For us European investors, if we look at the situation with an

earnings revisions

Refinitiv

Ending stock of crude oil

EIA

forward PE

Refinitiv

yield curve inversion

Tradingview

sp500

Tradingview

This article was written by

Davide Ravera profile picture
807 Followers
Registered Financial Advisor in Italy (Consulente Finanziario Autonomo, Delibera OCF n. 1735). CFA Level 3 Candidate.I am a growth-oriented value investor, mainly covering GARP stocks. I tend to be a contrarian investor, in order to take advantage of negative market sentiment. Hence, my stock picks tend to have a long time horizon (5+ years).I am a Quantitative Finance Graduate from WU Vienna and I used to work in the financial sector for different institutions and in various roles during my studies. I also started creating a community of Italian investors and you can find me on different social media: YouTube (@davideravera), Instagram (@davideravera.l), LinkedIn (@davideravera), TikTok (@davideravera.l).All of my articles are written to share my personal research and do not represent general or personalized financial advice of any kind.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: The information in the article is provided for informational purposes only. It should not be construed as investment advice or advice on buying, selling, or other types of transactions relating to an investment in products or services, much less an invitation, an offer or a solicitation to invest.

The information in the article is provided solely by virtue of the fact that everyone will independently make their own investment decisions: the report does not take into account investment objectives, nor specific needs or financial situation. In addition, nothing in the article represents or is intended to express financial, legal, accounting or tax advice.

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