12 months ago the markets were absorbed |
4.64 |
Jump to 37.28 |
|
|
have allowed cobit 19 to reassert itself |
5.6 |
Jump to 68.24 |
|
|
real after the market surge in 21 which |
5.76 |
Jump to 116.24 |
|
|
build on 2020's gains |
4.561 |
Jump to 119.119 |
|
|
in the markets in 2022 |
7.201 |
Jump to 164.879 |
|
|
we've got a team of 20 analysts |
5.841 |
Jump to 180.239 |
|
|
our analysts cover approximately 500 |
4.079 |
Jump to 186.08 |
CARDINAL
approximately 500
|
|
1934 so |
5.399 |
Jump to 223.56 |
|
|
p 500 are leading |
4.321 |
Jump to 241.439 |
|
|
impressive market breadth here in 2021 |
7.2 |
Jump to 256.4 |
|
|
again every one of these 11 sectors is |
6.48 |
Jump to 271.04 |
|
|
each one of them and across the globe um |
6.64 |
Jump to 283.44 |
|
|
in 2021 |
4.639 |
Jump to 303.28 |
|
|
and now let's move on to 2022 |
6.88 |
Jump to 304.96 |
|
|
and our eight fundamental forecasts for |
6.321 |
Jump to 307.919 |
|
|
2022. |
4.799 |
Jump to 311.84 |
|
|
as we saw in 2021 which was a recovery |
4.24 |
Jump to 336.32 |
|
|
earnings growth in 2022 |
5.921 |
Jump to 342.639 |
|
|
but again not as strong as 2021 when |
6.0 |
Jump to 345.36 |
|
|
stocks earnings increased to about 45 |
4.8 |
Jump to 348.56 |
|
|
two-thirds of |
5.359 |
Jump to 413.28 |
|
|
so for the u.s economy in 2022 |
6.481 |
Jump to 418.639 |
|
|
about three and a half percent growth in |
4.72 |
Jump to 425.12 |
CARDINAL
about three and a
|
|
come to in 2021 is about five and a half |
5.2 |
Jump to 431.52 |
CARDINAL
about five and a half
|
|
impressive recovery in 2021 |
6.24 |
Jump to 436.72 |
|
|
good growth in 2022 |
4.0 |
Jump to 440.08 |
|
|
just about two percent in the decade |
4.479 |
Jump to 449.12 |
PERCENT
just about two percent
|
|
in 2022 it's just not going to be as |
4.16 |
Jump to 457.12 |
|
|
as the rebound that we had in 2021 and |
5.759 |
Jump to 461.28 |
|
|
one of the main factors driving the |
4.959 |
Jump to 472.24 |
|
|
down to about three and a half percent |
3.68 |
Jump to 480.0 |
CARDINAL
about three and a
|
|
up toward 15 percent early in the |
6.88 |
Jump to 483.68 |
|
|
pandemic and rapidly falling down to 4.2 |
5.921 |
Jump to 485.599 |
|
|
know here at the end of 2021 |
6.0 |
Jump to 494.72 |
|
|
back to that three and a half percent |
5.599 |
Jump to 514.56 |
|
|
four percent |
4.72 |
Jump to 549.36 |
|
|
at some point in 2022 |
5.04 |
Jump to 550.72 |
|
|
going back 40 years that average service |
5.681 |
Jump to 570.399 |
|
|
payment as a percent has been 11 |
5.28 |
Jump to 573.04 |
|
|
it's down to around 9 |
3.04 |
Jump to 576.08 |
|
|
new variant of kova 19 emerges |
5.279 |
Jump to 636.0 |
|
|
one is the housing market and there can |
4.32 |
Jump to 672.959 |
|
|
the last three months according to the |
4.56 |
Jump to 704.8 |
DATE
the last three months
|
|
been increasing year over year at a 20 |
5.039 |
Jump to 709.36 |
|
|
in 40 years |
4.56 |
Jump to 717.2 |
|
|
the way that it did in 2021 and that's |
5.361 |
Jump to 760.079 |
|
|
one of the reasons we anticipate |
4.801 |
Jump to 762.959 |
|
|
uh the second chart here is a quick look |
6.56 |
Jump to 769.04 |
|
|
are about 11 |
4.161 |
Jump to 794.079 |
|
|
60 |
4.399 |
Jump to 801.68 |
|
|
10 to 15 months |
4.959 |
Jump to 824.24 |
|
|
over these last three months so |
5.44 |
Jump to 842.56 |
DATE
these last three months
|
|
going to be the problem in 2022 that it |
5.521 |
Jump to 853.519 |
|
|
has been in 2021 |
5.68 |
Jump to 856.56 |
|
|
through 2022 |
5.199 |
Jump to 867.44 |
|
|
and you see those big swings in 2020 |
6.88 |
Jump to 869.6 |
|
|
that was 30 down 30 up with the onset of |
5.601 |
Jump to 872.639 |
|
|
growth go from six percent to two |
4.56 |
Jump to 885.76 |
|
|
percent six percent in the second |
3.44 |
Jump to 888.399 |
|
|
quarter to two percent in the third |
2.4 |
Jump to 890.32 |
|
|
we're anticipating solid growth in 2022 |
5.6 |
Jump to 904.56 |
|
|
3.7 |
3.68 |
Jump to 908.8 |
|
|
in 2021 uh but a lot of has to do with |
6.88 |
Jump to 916.72 |
|
|
2022 we think that a lot of the trading |
5.881 |
Jump to 938.839 |
|
|
in 2022 |
3.279 |
Jump to 973.92 |
|
|
at a healthy two percent growth rate |
3.76 |
Jump to 998.48 |
|
|
the two percent line you can see many of |
4.16 |
Jump to 1018.72 |
|
|
but with wages rising at about five |
4.159 |
Jump to 1040.88 |
|
|
and the 10-year |
3.841 |
Jump to 1057.039 |
|
|
averaging about 3.5 percent not too much |
5.36 |
Jump to 1060.88 |
PERCENT
about 3.5 percent
|
|
and one interesting anomaly here john is |
3.601 |
Jump to 1097.039 |
|
|
now our third chart is on inflation |
3.68 |
Jump to 1108.4 |
|
|
uh we our one year outlook for inflation |
4.32 |
Jump to 1113.44 |
|
|
we're seeing right now by three year |
4.56 |
Jump to 1119.2 |
|
|
at about the four percent range and five |
3.12 |
Jump to 1123.76 |
|
|
around two percent |
4.159 |
Jump to 1130.4 |
PERCENT
around two percent
|
|
even inflation does run at two percent |
3.6 |
Jump to 1132.72 |
|
|
periods in the us in the past 80 years |
4.0 |
Jump to 1145.36 |
|
|
that's due to the first the |
5.12 |
Jump to 1193.6 |
|
|
the fed buying 120 billion in treasuries |
5.281 |
Jump to 1202.159 |
|
|
is above 8 trillion the fed has started |
4.88 |
Jump to 1209.039 |
|
|
15 billion per month |
3.921 |
Jump to 1213.919 |
|
|
we believe that could double to 30 |
3.441 |
Jump to 1215.919 |
|
|
billion per month and we might hear |
3.68 |
Jump to 1217.84 |
|
|
with tapering by spring 2022 |
6.0 |
Jump to 1226.72 |
|
|
to zero at the start of the pandemic and |
3.84 |
Jump to 1253.44 |
|
|
reach four percent ahead of expectations |
4.0 |
Jump to 1259.52 |
|
|
now look for two rate hikes in 2022 we |
4.319 |
Jump to 1273.84 |
|
|
then look for perhaps two to three more |
3.921 |
Jump to 1276.559 |
|
|
hikes in 2023 |
3.921 |
Jump to 1278.159 |
|
|
lift the defense funds rate to the 1.75 |
8.24 |
Jump to 1282.08 |
|
|
to 2 rate by say 2024 |
6.24 |
Jump to 1285.76 |
|
|
another one that's an historic high it's |
4.64 |
Jump to 1296.32 |
|
|
jumped to 120 percent and is set to jump |
4.161 |
Jump to 1298.559 |
|
|
one expects the us to default on its |
5.361 |
Jump to 1310.159 |
|
|
evaluation in the market in our first |
4.08 |
Jump to 1353.76 |
|
|
after an earnings decline in 2020 |
3.6 |
Jump to 1362.559 |
|
|
2021 rebounded by over 40 percent |
5.841 |
Jump to 1366.159 |
|
|
looking out to 2022 we expect solid |
5.36 |
Jump to 1369.52 |
|
|
growth but in the 10 range as most |
4.799 |
Jump to 1372.0 |
|
|
and the comps get a little harder 10 is |
4.321 |
Jump to 1378.559 |
|
|
the two asset classes are at fair value |
4.079 |
Jump to 1412.48 |
|
|
neither one is a screaming bargain |
3.36 |
Jump to 1416.559 |
|
|
for instance over the past 10 years |
3.6 |
Jump to 1421.52 |
|
|
see are the two valuation models |
6.0 |
Jump to 1440.48 |
|
|
also the s p 500 is above fair value |
7.2 |
Jump to 1452.64 |
|
|
50 below fair value and stock prices are |
5.36 |
Jump to 1459.84 |
|
|
as much as 50 above fair value based |
5.68 |
Jump to 1462.72 |
|
|
value in the s p 500 at about 3 800 |
6.08 |
Jump to 1478.24 |
|
|
which is 23 below the current level |
4.48 |
Jump to 1481.84 |
|
|
23 percent overvalued because the other |
4.719 |
Jump to 1486.32 |
|
|
2021 but was able to record strong gains |
4.839 |
Jump to 1499.96 |
|
|
2022 will begin with all those |
4.641 |
Jump to 1510.559 |
|
|
challenges front and center and 2022 is |
4.559 |
Jump to 1512.48 |
|
|
below average year for stocks in 2022 |
6.159 |
Jump to 1525.52 |
|
|
2022 |
5.04 |
Jump to 1548.96 |
|
|
when um kovid first hit |
7.039 |
Jump to 1558.64 |
|
|
10 11 12 |
3.761 |
Jump to 1574.559 |
|
|
and then it shot up toward 80 |
5.92 |
Jump to 1578.32 |
|
|
and it's right about at 22 so |
6.159 |
Jump to 1595.52 |
|
|
three times a year for a five percent |
6.24 |
Jump to 1616.88 |
|
|
and we just saw one you know right |
5.12 |
Jump to 1623.12 |
|
|
18 months so |
4.559 |
Jump to 1663.36 |
|
|
um 30 sell-off in stocks in march 2020 |
7.601 |
Jump to 1670.159 |
|
|
so that should cover us for another six |
4.0 |
Jump to 1675.12 |
|
|
to eight months |
2.799 |
Jump to 1677.76 |
|
|
near 20 near 22. |
3.36 |
Jump to 1688.24 |
|
|
of course be new variants of covet 19 |
4.88 |
Jump to 1694.159 |
|
|
the initial onset of covet 19 |
5.92 |
Jump to 1708.72 |
|
|
back in in march 2020 so |
4.4 |
Jump to 1711.84 |
|
|
hikes you know maybe two into 2022 |
7.92 |
Jump to 1774.08 |
|
|
and we'd only been thinking of one so |
5.521 |
Jump to 1778.799 |
|
|
bond investors would put the 200 basis |
3.6 |
Jump to 1802.799 |
|
|
would have a 10-year treasury yield now |
4.801 |
Jump to 1812.159 |
|
|
of six percent |
5.279 |
Jump to 1815.12 |
|
|
and it's below one and a half percent so |
5.12 |
Jump to 1816.96 |
|
|
another risk for 2022 would be if oil |
6.079 |
Jump to 1828.96 |
|
|
2021 |
3.279 |
Jump to 1839.12 |
|
|
out five to ten years |
4.479 |
Jump to 1852.08 |
|
|
2022 |
3.92 |
Jump to 1861.2 |
|
|
as it did in 2021 |
5.28 |
Jump to 1862.72 |
|
|
looks like about three trillion dollars |
5.36 |
Jump to 1887.039 |
MONEY
about three trillion dollars
|
|
i guess one of the things to think about |
3.439 |
Jump to 1894.96 |
|
|
immediately and a trillion dollars was |
5.36 |
Jump to 1903.12 |
|
|
spent in you know a matter of three or |
4.08 |
Jump to 1906.0 |
|
|
four months |
3.439 |
Jump to 1908.48 |
|
|
these three trillion dollar this three |
3.52 |
Jump to 1910.08 |
MONEY
three trillion dollar
|
|
trillion dollar program |
5.12 |
Jump to 1911.919 |
|
|
is uh expected to be implemented over 10 |
4.959 |
Jump to 1913.6 |
|
|
paid for and one of the |
5.039 |
Jump to 1932.0 |
|
|
and nasdaq is down one and a half |
4.959 |
Jump to 1971.2 |
|
|
in 2022 |
4.88 |
Jump to 1978.159 |
|
|
year one is a good year we're wrapping |
3.921 |
Jump to 1999.039 |
|
|
up year one you know we're probably |
4.72 |
Jump to 2001.12 |
|
|
going to do better than that 14 average |
5.36 |
Jump to 2002.96 |
|
|
in year one of a presidential cycle |
5.04 |
Jump to 2005.84 |
|
|
we're heading into year two year two is |
4.56 |
Jump to 2008.32 |
|
|
against what the 10-year treasury bond |
6.161 |
Jump to 2058.879 |
|
|
one um |
4.159 |
Jump to 2066.48 |
|
|
interest rates are higher and third when |
5.68 |
Jump to 2100.32 |
|
|
the 10-year treasury bond yield is on |
4.64 |
Jump to 2104.16 |
|
|
1960 so 60 years of of returns |
8.721 |
Jump to 2142.079 |
|
|
and on average since 1960 stocks have |
6.32 |
Jump to 2146.96 |
|
|
returned 12 percent |
4.4 |
Jump to 2150.8 |
|
|
and one out of every five years has been |
5.76 |
Jump to 2155.2 |
|
|
so double digit returns but 20 percent |
4.08 |
Jump to 2160.96 |
|
|
negative year in stocks since 1980 and |
6.48 |
Jump to 2165.04 |
|
|
we point out 1980 because that's when |
5.12 |
Jump to 2168.88 |
|
|
13 on average |
3.76 |
Jump to 2189.52 |
|
|
one out of every six years so |
5.76 |
Jump to 2193.28 |
|
|
way down from 1980 better returns in the |
4.4 |
Jump to 2199.04 |
|
|
years where the 10-year yield was below |
4.559 |
Jump to 2205.04 |
|
|
4 |
4.0 |
Jump to 2207.92 |
|
|
was 16 |
4.96 |
Jump to 2212.96 |
|
|
and only one of every 10 years was |
4.959 |
Jump to 2220.4 |
|
|
outlook we think the 10-year is going to |
4.24 |
Jump to 2229.04 |
|
|
you know two and a half 2.75 percent |
5.68 |
Jump to 2233.28 |
|
|
in 2022 |
4.48 |
Jump to 2236.72 |
|
|
year two of the presidential cycle |
5.76 |
Jump to 2251.68 |
|
|
since 1980 stocks have returned 12 on |
4.639 |
Jump to 2257.44 |
|
|
but our we haven't set a s p 500 target |
5.201 |
Jump to 2269.119 |
|
|
settles in 2021 but we think returns are |
5.52 |
Jump to 2276.0 |
|
|
eight to ten percent |
2.96 |
Jump to 2281.52 |
PERCENT
eight to ten percent
|
|
so one of the questions we've had coming |
5.601 |
Jump to 2306.079 |
|
|
in and i'm going to take this one john |
5.199 |
Jump to 2308.16 |
|
|
and i'll and i have one for you next and |
2.64 |
Jump to 2311.68 |
|
|
it well i i would you know one one thing |
3.68 |
Jump to 2320.8 |
|
|
uh looking looking at this four year |
4.08 |
Jump to 2325.2 |
|
|
the election in the first year of the |
3.2 |
Jump to 2329.28 |
|
|
um and then as the second year comes |
4.72 |
Jump to 2347.52 |
|
|
this is not the first time the us has |
5.28 |
Jump to 2363.52 |
|
|
when one party controls the white house |
6.321 |
Jump to 2387.359 |
|
|
and one party controls the congress |
5.28 |
Jump to 2390.079 |
|
|
the sitting president loses 50 or 60 |
4.32 |
Jump to 2410.72 |
|
|
the normal pattern uh in 2022 you would |
6.72 |
Jump to 2417.44 |
|
|
see the congress tip over to one side of |
4.72 |
Jump to 2421.2 |
|
|
as well and that's one reason why the |
3.76 |
Jump to 2438.72 |
|
|
is not uh necessarily one of the better |
5.52 |
Jump to 2442.48 |
|
|
and i will tell you that for the past 10 |
4.32 |
Jump to 2473.92 |
|
|
i guess 11 years now |
6.72 |
Jump to 2478.24 |
|
|
however in 2021 you probably remember |
6.72 |
Jump to 2543.44 |
|
|
fall from eight percent of the stock |
5.76 |
Jump to 2552.16 |
|
|
market to two percent it was deep value |
6.32 |
Jump to 2554.24 |
|
|
um through the first of the year |
3.92 |
Jump to 2568.56 |
|
|
through the first half of the year but |
2.88 |
Jump to 2571.28 |
DATE
the first half of the year
|
|
in the second half |
3.839 |
Jump to 2572.48 |
|
|
performer for about 10 years now |
5.2 |
Jump to 2621.44 |
|
|
10-year yields negative |
5.599 |
Jump to 2638.48 |
|
|
that's really down like the the five to |
4.881 |
Jump to 2655.359 |
|
|
ten percent range jim our our focus |
4.96 |
Jump to 2657.44 |
|
|
chart we pointed out that our three-year |
5.04 |
Jump to 2676.079 |
|
|
uh all 11 sectors but what are some |
5.201 |
Jump to 2698.079 |
|
|
in 2022 as it was this year what what |
4.399 |
Jump to 2733.44 |
|
|
well one jim was that ism supply chain |
6.0 |
Jump to 2743.68 |
|
|
at you know something close to 70. and |
5.52 |
Jump to 2754.64 |
|
|
anytime they're over 50 you know they're |
4.959 |
Jump to 2760.16 |
|
|
70 over the past three months |
5.039 |
Jump to 2772.8 |
DATE
the past three months
|
|
toward the 60 which is still a high |
3.841 |
Jump to 2777.839 |
|
|
so so that's one factor |
4.72 |
Jump to 2784.48 |
|
|
for the longest time let's say for 20 |
4.881 |
Jump to 2801.599 |
|
|
years that was 63 percent |
4.48 |
Jump to 2803.52 |
|
|
to 61 percent a lot of people have left |
7.2 |
Jump to 2810.24 |
|
|
be important in in 2022 |
5.84 |
Jump to 2904.4 |
|
|
so so jim let's take a second and go |
4.24 |
Jump to 2908.079 |
|
|
through these last two slides maybe |
4.319 |
Jump to 2910.24 |
|
|
here are the 11 sectors we like some of |
4.561 |
Jump to 2945.359 |
|
|
um and those are two of the bigger |
4.72 |
Jump to 2963.44 |
|
|
sectors in the market at 28 |
5.28 |
Jump to 2965.2 |
|
|
and 13 |
4.88 |
Jump to 2968.16 |
|
|
short-term rates in 2022 that takes us |
5.839 |
Jump to 2998.72 |
|
|
and this is the themes for 2022 |
6.8 |
Jump to 3020.88 |
|
|
and you can read in depth about any one |
4.561 |
Jump to 3076.079 |
|
|
um and we're thinking about in 2022 |
4.32 |
Jump to 3105.92 |
|
|
instance 5g goes mainstream well people |
4.0 |
Jump to 3231.52 |
|
|
maybe think well gee 5g |
3.921 |
Jump to 3233.599 |
|
|
i mean you know the first iphones it's |
3.28 |
Jump to 3235.52 |
|
|
actually see that it's accessing a 5g |
4.401 |
Jump to 3254.559 |
|
|
content per device in a 5g phone than a |
4.801 |
Jump to 3273.599 |
|
|
4g phone |
3.92 |
Jump to 3276.24 |
|
|
if you're one of these |
4.159 |
Jump to 3278.4 |
|
|
one of the service providers you're |
4.0 |
Jump to 3285.2 |
|
|
uh jim i see one in here let's touch on |
5.28 |
Jump to 3336.96 |
|
|
so argus covers the 500 stocks we cover |
5.921 |
Jump to 3346.319 |
|
|
closely and we're watching it from three |
3.92 |
Jump to 3363.04 |
|
|
one is from the angle of a consumer |
6.639 |
Jump to 3366.96 |
|
|
uh so consumer is one area |
6.439 |
Jump to 3396.4 |
|
|
sixty thousand forty thousand thirty |
4.64 |
Jump to 3406.88 |
DATE
sixty thousand forty thousand thirty
|
|
thousand it's it's it's been you know to |
4.32 |
Jump to 3408.96 |
|
|
just in uh 2021 |
7.36 |
Jump to 3413.28 |
|
|
it's about three trillion dollars |
4.48 |
Jump to 3424.319 |
MONEY
about three trillion dollars
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fund uh you know maybe two or three |
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bitcoin is at 3 trillion gold is at 10 |
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trillion so bit the cryptocurrency would |
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i'm gonna say three or four years before |
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you know crypto starts to make a two or |
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three percent |
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and then the third way to play it of |
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know even at that you know kind of one |
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to two percent area so those are our |
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