Charts & Chat - March 30, 2025

This week, CEO Eric Boyce, CFA discusses:

1. earnings estimates have come down, but are still growing for the S&P 500, but not for the Russell 2000

2. valuations have come down appreciably for the S&P 500, and the good news is that it's coming from price/earnigns multipl contraxtion and not earnings

3. gold catches a bid, and there's a strong bet that interest rates will come down based on interest in 3-month SOFR futures

4. both individual and institutional investors more cautious amidst the change in leadership within the market (Mag 7 goes on sale)

5. foreign ownership of US investments has picked up, providing both a benefit and potential risk

6. FOMC more concerned with unemployment and inflation, but do not expect recession despite some estimates for negative growth during 1Q 2025

7. Regional Fed surveys highlight caution; trade figures highlight front running of imports ahead of tariffs

8. corporate profits remain high; pending home sales plunge