Justin and Jared discuss why they remain bullish despite high valuations, including strong earnings, resilient employment, broader S&P 500 participation, and the changing role of the Magnificent Seven.
Takeaways:
- We note that eighty-six percent of S&P 500 companies beat Q2 earnings estimates, indicating widespread corporate profitability.
- We observe that market breadth expanded as the MAG7 returned under one percent while the other 493 S&P constituents rose substantially during the period.
- I emphasize that artificial intelligence has not materially reduced employment yet, because job openings remain above their long term averages.
- We highlight labor data showing real average hourly earnings near positive territory, which supports continued consumer purchasing power amid inflationary pressures.
- I caution that the Dodgers ownership investigation and the team’s deferred payroll structures could materially affect Major League Baseball collective bargaining and competitive balance.
Chapters:
- 00:04 - Episode Introduction — Financial Planning for Oil & Gas Professionals
- 00:31 - Why We're Still Bullish
- 05:49 - Q2 Earnings: Broad S&P 500 Strength Beyond Big Tech
- 10:02 - Examining AI's Impact: Three Charts on Jobs and Earnings
- 18:06 - Dodgers: Mark Walter SEC investigation and MLB implications
- 27:00 - Episode Wrap-Up: Key Takeaways & Listener Feedback
Resources:
Disclosure: This information is for informational purposes only. Nothing discussed during this video should be interpreted as tax, legal, or investment advice. If you have questions pertaining to your specific situation, please consult the appropriate qualified professional.
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