Your Weekly Blip 8/16/21

Your Weekly Blip 8/16/21

The Markets,
Over the past week, markets held firm and crept higher to new all time highs. The Dow was at 34,792 when I left and today finished at 35,625 up 110 points after an early 200 point selloff. The tech heavy NASDAQ also trades near highs but today closed lower by 29 points. Gurus mention that pullbacks these days are generally seen by holders of sideline cash as an opportunity to go long. IBD and BTS both show markets in rally mode. It looks like smooth sailing for now.
The Economy and Earnings
With the bulk of corporate earnings behind us the results have been good enough to alleviate concerns over covid, China, inflation fears and the fall of Kabul. Of the 91% of companies that have reported, 87% have delivered upside surprises for both revenue and net profits. The blended growth rate is 89.3% and of the companies that issued forward guidance, 58% have been positive. The forward PE ratio is above the 5 year average at 21.1 times (average is 18.2 times). Disney and some retailers report this week but overall the Q2 earnings season was a hum dinger!
Items of Interest
Our window for LTC policies that exempt people from the Washington Long Term Care Trust Act has effectively closed as the companies we work with all ceased to take new applications which means we are officially out of options for exempting people from the tax. Clients with applications already in the system should be fine but no new applications are being accepted.
The Scout canoe trip to Northern Tier was wonderful. 9 days in a canoe brought out the best in our scouts as they paddled, laughed, cooked meals (ate everything in sight) and immersed themselves in the wilds of the vast Lake of the Woods wilderness. The scouts saw a wolf and a moose along with several deer, eagles, loons, otters, and plenty of beaver. We caught and ate fish and each crew covered somewhere between 105 and 110 miles which included 30 plus portages. We had a headwind the entire time and the weather was mixed with sun, wind and two days of rain. The sunsets and stars were spectacular. Through it all the scouts showed energy, toughness and teamwork. Hats off to the entire Northern Tier organization for running an amazing operation that serves about 5,000 scouts per summer.