Investment Insights: Behind The Numbers - Episode 2
Podcast recorded 04/22/2019.
This week on Behind the Numbers, Frazer Rice, Sr. Wealth Strategist and Michael Kassab, Chief Investment Officer of Calamos Wealth Management, focus on corporate earnings and overall expectations for growth in the quarter and look to current projections and how they stand today. Michael and his team look forward to hearing from a much broader set of companies this week and part of next to get a better sense as to how the US and global economy is holding up.
Keeping a close eye on detecting any signs of extended weakness in demand either here or abroad, Michael notes the healthy consumer and improved retail sales in March—this marked a 3.6% increase in retail sales versus a year ago. The biggest driver being strong auto sales, however even if you strip those out, this report further dispels any fears that the consumer is wobbling.
Michael notes that rising oil prices, in his opinion would not yet describe as a huge concern. With summer driving season on the way, the national average for a gallon of gasoline at the pump is once again approaching $3. And as well all know, higher prices at the pump act like an extra tax on the consumer, and siphon off spending from other areas.
Looking into the future, Michael believes the most likely path from here would be for markets to move sideways for a while, or drift modestly higher, but he would think investors are going to want to see some sort of confirmation that a back-half acceleration in earnings will come to fruition before equities resume.