It’s been six years since Twitter went public, and the stock has essentially gone nowhere. Facebook, meanwhile, has rocketed 400% higher since its IPO. Katie Stockton of Fairlead Strategies and Nancy Tengler of Tengler Wealth Management expect that trend to continue.Read More
Katie Stockton of Fairlead Strategies and Nancy Tengler of Tengler Wealth Management discuss the industrial stocks that are rallying on a possible phase one trade deal between the U.S.-China being reached with CNBC’s Mike Santoli.Read More
Oct. 29 marked the 90th anniversary of Black Tuesday, which preceded the Great Depression. Periodically the odd pundit weighs in on how today’s market is analogous to 1929 and, hey, by the way, buy some gold. Before the gold bugs take me to task, I am not anti-gold; I just don’t like the fearmongering. As the great Peter Lynch once said, “Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in the corrections themselves.”Read More
If you check your 401(k) statement anytime soon you should feel much better than you did a year ago. Your investments are doing well.
But why? Bad news and uncertainty are everywhere: Trade wars, impeachment, flat corporate earnings and a looming presidential election. Add to that muddy mix a slowdown in global growth and central banks worldwide cutting interest rates to shore up sluggish economies.Read More
Firm will change its name to LAFFER | TENGLER INVESTMENTS
Charlotte, North Carolina (November 1, 2019) — ButcherJoseph Financial Holdings, LLC, an affiliate of investment banking firm ButcherJoseph & Co., today announced the acquisition of Laffer Investments, Inc., an SEC Registered Investment Advisor (RIA) based in Nashville, Tennessee.Read More
Roger Cheng, CNET executive editor, and Nancy Tengler, Tengler Wealth Management, join ‘The Exchange’ to discuss what’s in store for Apple’s future after the company announced earnings on Wednesday.Read More
The Consumer Staples Select Sector SPDR Fund (XLP), the largest consumer staples ETF, and rival staples ETFs are soaring this year as investors embrace defensive sectors. Regarding XLP, that fund is higher by 20% year-to-date, but some market observers are concerned that the consumer staples sector’s valuations are becoming stretched.
Consumer staples, health care, and industrial sectors typically outperform during the so-called slowdown period of a business cycle when economic growth starts decelerating but remains positive, the economy runs beyond its full capacity and monetary policy becomes restrictive.
“I do think there are better places to be in the market,” said Nancy Tengler, chief equity strategist at Tengler Wealth Management in an interview with CNBC. “These valuations are pretty stretched.”
Investors typically shift into consumer staples during bouts of market volatility because of the sector’s relatively generous dividend payouts and the slow-and-steady nature of the consumer staples business – consumers usually continue purchase basic products that staples firms sell regardless of market or economic conditions.
Another Lift For XLP
XLP traded modestly higher Tuesday when its largest holding, Dow component Procter & Gamble Co. (NYSE: PG), rallied after delivering another impressive earnings report. Procter & Gamble reported earnings per share of $1.37 from revenue of $17.8 billion. Analysts were expecting earnings of $1.24 a share on sales of $17.4 billion.
“P&G also raised its outlook for sales growth to between 3% to 5% from a prior range of 3% to 4%. It also now expects organic sales growth of between 3% and 5%, up from the prior range of 3% to 4%,” according to Barron’s.
However, P&G’s boffo earnings report could add to the case that the consumer staples sector is getting expensive.
“Tengler said that while she doesn’t believe September’s unexpected drop in retail sales ‘is indicative of a weakening consumer,’ a number of the stocks behind consumer-facing companies appear to have lofty valuations,” according to CNBC.
Consumer staples are the products that people use frequently and occupy a significant chunk of the average household’s budget. The sector provides the goods that shoppers typically consume on a weekly or even daily basis, and many will continue to purchase these products even during a recession.
Some signs are emerging investors agree with the notion that staples are getting expensive. For the week ended Oct. 18, XLP saw $162 million in outflows.
Consumer staples are having a banner year, but as fears of a recession coupled with slower global growth continue to settle in investors’ minds, will this portend to further strength or weakness? Some analysts see other opportunities within the capital markets.Read More
A happy, healthy retirement is most everyone’s dream. We imagine lazy mornings over a cup of coffee and a good book, days relaxing on a tropical beach, exploring foreign lands and playing with our grandkids. No stress. No worry.Read More
These ratings were awarded by Morningstar as of Dec. 31, 2023, based on information for the time period indicated through Dec. 31, 2023. The overall rating is a weighted average of the three-, five- and ten-year ratings. Laffer Tengler Investments, Inc. does not compensate Morningstar to be provided a rating; however, we do pay Morningstar to obtain other products and services available from them or their affiliates.
PSN Top Gun
Laffer Tengler Investments’ Equity Income Strategy was named Top Gun 6 rating, meaning our Equity Income Strategy had an r-squared of 0.80 or greater relative to the style benchmark for the recent five-year period. Moreover, the strategy’s returns exceeded the style benchmark for the three latest three-year rolling periods and have a standard deviation for the five-year period equal or less than the median standard deviation for the PSN Managed Account US Value peer group. The top ten information ratios for the latest five-year period then become the 6 Star Top Guns. Laffer Tengler Investments does not compensate Zephyr to be provided a rating, however, we do pay Zephyr for use of the logo.LEARN MORE