Still Waiting for Godot

Populism and Washington dysfunction are two key risks for markets in 2017, and last week was an important one for both.

The Return of Fundamentals

Quarterly earning season is upon us, and underneath the guise of downward-revised forecasts and the effects of write-downs, the story tells of U.S. corporate profits falling, not rising. These results caused The Economist to ask the question, “Are corporate profits at last running out of steam?” in its recent Buttonwood article, “Sound the Retreat.” In […]

Fundamentals, The Federal Reserve, and Forging Ahead to 2014

In our letter to clients after the fourth quarter of 2011, we wrote, “despite the short-term relief that the Fed’s choice to be both a referee and a player on the field may bring, the long-term consequences of their actions remain unknown.” Nearly two years later, some of those consequences are being realized, as the […]

Wall Street turns to fundamentals, and the picture sours

Adrian Cronje, Balentine’s Chief Investment Officer, spoke to Reuters in the article, “Wall Street turns to fundamentals, and the picture sours.” Says Adrian, “‘The stock market’s expansion this year has been driven by multiple expansion rather than material improvement in underlying fundamentals.’” For more on corporate  earnings and the return to fundamentals, read the Reuters article, […]