Is the FED about to Spark a Stock Market Melt-Up???
Join Bob, Ryan, and Chris as they dive into the recent jumbo-sized interest rate cut by the Federal Reserve. Could more interest rate reductions ignite a massive stock market melt-up? We’ll explore what recent market activity is signaling about interest rates, inflation and how they may affect your investment portfolio. Whether you’re planning for retirement or just curious about the financial world, this episode is packed with unique insights you can’t miss. Tune in to stay ahead and understand the potential impacts on your wealth.
Hidden Facts of Finance
U.S. mergers and acquisitions rose 37% this year for the first nine months compared to the same time last year. Global M&A transaction values so far this year have been roughly about $2 trillion, are already beating all of 2023’s $1.6 trillion, and the IPO market has improved, according to KPMG, public offerings listed in the U.S. raised 28.3 billion so far this year. That’s up over 50% since last year.
The S&P 500 stock price index is driven by earnings per share, which have been growing mostly between 6% and 7% a year since the 1950s. The earnings per share could double to $400 earnings per share by the end of the decade, putting the S&P 500 at 8,000 if you base it on today’s valuation.
EVs as a percentage of new car sales are up and sales of electrified vehicles, be they hybrid or fully electric, now account for 19% of all total U.S. sales. That’s up three percentage points from the same period a year ago. Also, the average price of a new car in the USA was $45,000 in September. That’s down 3% from last year, but still up 29% from 2019 before the pandemic.
