Summary: Daniel Kertcher – Stock Market Update November 2013 Hi! Daniel Kertcher, CEO and Founder of Trading Pursuits, and welcome to the monthly market review for November 2013. Now before I get started, there’s just a couple of quick points I need to share with you. Number one, what you are hearing in this presentation is what we call General Advice. It’s not individual, specific advice. Furthermore, we haven’t taken into consideration your own personal financial objectives. Trading involves risk. Past returns do not mean we’ll get the same in the future. And finally, my company- Trading Pursuits, we hold an Australian financial services license. Okay. Now this particular month has been quite exciting. As you can see from this graph of the S&P 500, this of course is the top 500 companies in America. You can see how it’s reaching all-new high of 1,790 points. It smashed right through 750 points from last month and has rallied up, getting very close to 1,800. Now, what’s been fuelling this big growth? Well, number one just like I’ve been saying in the past couple of months if you’ve watched the previous videos, is that Janet Yellen, who is now looking (set to be) the next chairperson of the Federal Reserve, she has publicly come out in the last few days and she has been supporting and defending the Quantitative Easing Program, or the money printing program that America has been doing. And I’ve been saying this for months now that she has a history of supporting that practice and so we’re expecting that practice of money printing to continue for quite some time now. There was some thought and there was certainly market expectation that the Federal Reserve would start to slow down the money printing, by September this year but that now seems to have been completely thrown out the door. And it looks pretty set that Janet Yellen will continue to taper well into 2014. In fact, you can see here that article I downloaded today from the Sydney Morning Herald, talking about there is now no timing to slow down the Quantitative Easing Program. So, Janet Yellen has said in this article and publicly that they will continue, the Federal Reserve will continue to stimulate the economy until they feel that the economic signs are there, the economy can maintain its own momentum. Now, that’s a very vague statement given the fact that the market all the wise, is really performing well. Here we can see the earnings for the profit and loss statements for the top S&P 500 companies. And this again in one of the most outstandingly profitable quarters for the S&P 500 ever. Here we can see we’re looking at all securities that make up the S&P 500 versus all companies have almost now reported in this past quarter. And you can see here the Sales Surprises; they are reasonably in line with market expectations, about half a percent higher. So that is the number of sales that companies have been making. But more importantly is the earnings- and this is the profit that the companies have been making. And you can see overall, companies have made (the top S&P 500 companies) have made more than four percent more profit than the analysts expected. And, analysts have been consistently under estimating the amount of profit that the companies will be making, quarter after quarter after quarter for the last four and a half – five years. But this particular month, if you have a look down at the earnings schedule there, you’ll see every single sector has outperformed market analyst expectations. So the companies are booming at the moment. They’re making absolutely record profits. And yet despite this, the Federal Reserve seems to be very committed to continue the money printing program. If you have a look at the bottom graph, you can see the big blue bars, that is the amount of earnings. And you can see this past month has been a very, very strong earnings month. Now some other things which have helped prompt and drive this[...]
