“Baby Bull Market” – Paul Pepper and Alex LaBrunerie
Are the Bulls Back?
Is the stock market bouncing in the right direction now? Alex LaBrunerie thinks that is a safe assumption when it comes to the stock market and the economy in general, though there are still some financial storms to watch out for. Some economists continue to forecast a recession for later this year, while others are breathing easier with their future forecasts.
“Let’s just take the good news and we can worry about that tomorrow,” Alex told the Radio Friends with Paul Pepper programs audience recently. After all, the tomorrow that some predict — a recession — might already be more bull than bear.
“The bull market can pick up on future earnings,” Alex says. “And that’s what I think has driven a 20 percent increase in the S&P 500 since October.” He adds, as a cautious caveat, that “it’s been about a year and a half of predicting a recession.”
The economy certainly has slowed some of the tech stocks. Alex calls the current picture a “baby bull market,” as evidenced by some of the companies that are now “really worth a great deal of money.”
“The technology stocks have regained their prowess on Wall Street and their prices have gone up,” he says, pointing specifically to the semiconductor/software company Nvidia. Though not a household name like Microsoft, Apple, and Amazon, Nvidia recently joined a rare league by becoming a trillion-dollar company.
America Needs to Do Some Financial Planning
The program’s listeners will remember that the politicians and policymakers in Washington recently resolved the nation’s debt ceiling quandary – or at least the issue was pushed down the road a way, which makes it prime fodder for 2024 political campaigns.
Alex adds, “We do need to step back as Americans and look at our deficit – how much money we really are spending, how much we are borrowing to run our country.”
Whether you’re an individual, a government, or a corporation, interest rates go up on out-of-control borrowers. “If you’re seen as a bad risk, no one’s going to loan you money at 3 percent,” he says.
What can individual citizens do about it? Alex says the key is keeping our personal finances in order. As he puts it, “Control what we can control.” Ultimately, our political leaders must make prudent decisions.
“I think we need to get a thoughtful group of political leaders that can converse civilly and seriously to talk about the balancing of the budget,” he explains. “We did it in the Clinton era. We’ve done it in the Eisenhower era. We’ve done this as Americans.”
Rome wasn’t built in a day; nor did it collapse in a day. Financial mismanagement is a classic example.