ERShares In The News

Dr. Shulman discusses the strong retail sales from Holiday shopping and increases in online advertising. He focuses on potential winners from the record sales (AMZN, GOOG, FB, and FDX) and potential for a year-end rally. He concludes that within the next few days we should see whether or not we have clear direction.

Dr. Shulman discusses the impact that lower oil prices, rising corporate profits, M&A activity, and retail sales will have on Capital Markets for the remainder of 2018. He notes that with the recent Market decline, some stocks are now attractively priced as acquisition targets. A number of stocks have appreciated considerably based on rumors alone. He concludes that within a short period of time we will have a better sense of Holiday purchases and the potential for a year-end stock market rally.

Dr. Shulman discusses Apple’s powerful influence on the overall market and provides a historical perspective of 126-year-old GE. He describes how GE stock has plummeted 86% over past 18 years and 52% YTD. He cites evidence of when GE was a powerful Finance company and issued $3 Billion in inexpensive commercial paper every day. Those days are over. He ends on a positive note citing optimism for Holiday Sales and a year-end rally for markets.

Dr. Joel Shulman discusses the strong rise in corporate profits from 3rd Quarter 2017 to 3rd Quarter 2018. He notes that overall, US Large Cap Entrepreneurial companies have grown profits 47% in the past year while US Small Cap profits have appreciated approximately 100%. He mentions that during this earnings season stock prices have experienced considerable volatility in both positive and negative directions.

In his discussion, Dr. Shulman mentions the Markets and his views for the remainder of 2018. Though he recognizes the effect that China Trade Tariffs have had on corporate profits (412 of 1176 public companies reporting 3rd quarter profits and citing China issues have declined 12.5% upon announcement) he remains bullish on the remainder of the year. He addresses the notion of “Winning the Loser’s Game” with regard to “stock pickers”. In this situation, he describes the mathematical likelihood of beating a Market Basket, by simply removing the bottom performers or accentuating the top in a widely-held basket or index. He states that, net of fees, it is often difficult to outperform pure indices, but acknowledges that some Managers claim unique risk Factors that help. He concludes with a discussion regarding corporate profits, particularly for US Small Cap and Large Cap Growth companies and how they have improved considerably from last year. He predicts that the US will experience strong holiday sales and that the stock market will end the year on a positive note.

Professor Joel Shulman discusses the recent market collapse and the opportunity for a year-end recovery. In his discussion, he notes that there are 499 ETFs that hold approximately $1.82 trillion (up from $1.4 trillion last year) in US Large Cap stocks. He describes the strong return movements for high profile stocks (e.g. Amazon, Facebook, Netflix, Google, etc.) being associated with ebbs and flows of institutional investors (who reduced their equity exposure of $10.5 Billion in the third week of October). He believes the Markets have overreacted in October (its the third worst October in the past 50 years after October 1987 and October 2008) and remains confident that despite diminished potential based on China Tariffs, the overall growth in Corporate revenues, profits, research & development, and jobs will continue to support a strong end to 2018 in US equities.

Dr. Shulman discusses the recent Market drops and provides his insights regarding Netflix and other Information Technology companies. He describes the strong growth of Netflix over the past few years and mentions how the extraordinary growth in revenues, profits, Research & Development, and International profits cannot be sustained at the same rate going forward (e.g. international streaming profits doubled three consecutive quarters). He notes that key Wall Street analysts have dropped their price targets, though most still remain more than 20% above current levels. He remains optimistic that Market price levels will end the year higher.

Dr. Joel Shulman appears on FOX Business News Varney & Co. before the Market opened and addresses Market declines from last week. He offers his commentary about future directions of the Markets (remains bullish) and includes as support current interest rates, inflation, unemployment, China Tariffs, and corporate profits. He believes October will be volatile with many big winners and losers (overall positive for growth). This is a “stock pickers” market.

EntrepreneurShares Managing Director Dr. Shulman discusses USMCA changes and payroll increases to US workers. He also defends US Colleges from criticism.

Dr. Joel Shulman appears on CNBC World Wide Exchange on September 24th 2018 to discuss year-end market movements and emerging market developments.