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A Bird's Eye View Blog

Fireside Charts: EPS Projections Unchanged, Nasdaq Composite Chases S&P 500, Junk Bond Yields Disappoint

By:BCM Investment Team | Date:Jan13, 2020 | Category: Equity, Economics, Market Highlights, Fireside Charts

Earnings season kicks off this week and analysts' expected EPS growth in the MSCI USA index is currently at 10%+ through 2021. Strong growth from tech firms is also helping boost the Nasdaq Composite Index, which just saw its market value climb to over half of that of the S&P 500. Over in the bond market, 10-year U.S. Treasury (UST) yields look to be revisiting patterns from 2012 and 2016; could they be poised to rise after hovering near historic lows for much of the last year? Finally, it's resolution season out there—can BCM help you tackle 2020's most popular?


1. Will the trade truce allow companies to grow their earnings enough to keep up with expectations?


projected msci usa eps growth

Source: WSJ Daily Shot, from 1/13/20



2. The tech heavy NASDAQ has grown to over 1/2 the market cap of the S&P 500...


nasdaq composit vs. s&p 500 market cap

Source: WSJ Daily Shot, from 1/13/20



3. Similar to U.S. Small Caps, the DOW Transports have yet to reclaim their 2018 highs...


dow transports

Source: The Chart Store, as of 1/10/20



4. Are interest rates basing before a new leg up?


10-year UST yields

Source: The Chart Store, as of 1/10/20



5. Junk bond yields have fallen below the lows of 2017...


Junk bond returns

Source: The Chart Store, as of 1/10/20



6. We've got a few ideas on #1!


US most popular resolutions 2020

Source: Statista, from 12/16/19







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Disclosure: The charts and info-graphics contained in this blog are typically based on data obtained from 3rd parties and are believed to be accurate. The commentary included is the opinion of the author and subject to change at any time. Any reference to specific securities or investments are for illustrative purposes only and are not intended as investment advice nor are a recommendation to take any action. Individual securities mentioned may be held in client accounts.