Dear Clients,
I hope this letter finds you well and that you are enjoying your summer to the fullest. As we venture into the second half of the year, I wanted to take a moment to share some important updates and news from our organization.
Firstly, our summer internship program has come to a successful conclusion. We had the privilege of hosting a talented group of interns who brought fresh perspectives and enthusiasm to our organization. We are currently working on a feature highlighting their experiences during the internship, so keep a look out for that in your inbox.
With the summer coming to a close, we are eagerly preparing for next season in Naples, including our Welcome Back Receptions and Client Dinners. Save the dates will be sent sometime next month, and we are looking forward to welcoming you.
Lastly, please be sure to check out Senior Portfolio Manager Tyler Hardt’s economic commentary in this month’s newsletter. To summarize, we are growing concerned about stretched valuations of mega-cap stocks which are pricing in not just a soft-landing, but also significant economic growth and earnings power. The average P/E ratio of the “magnificent seven” stands at 42x expected earnings.
Our primary concern lies in the weight of these stocks within the S&P 500 that are contributing to significant market overvaluation. We believe any reversal in their valuations could lead to significant drawdowns in both the S&P 500 and Nasdaq. These factors underscore the importance of strategic wealth management to safeguard portfolios and identify opportunities amidst market volatility.
However, not all stocks are overvalued. With the other 493 stocks of the S&P 500 trading closer to 15x, there are opportunities for high-quality companies at attractive valuations, offering compelling returns. As a firm, we remain prepared to seize opportunities within the current market dynamics.
In conclusion, your trust has fueled our journey so far, and we are committed to delivering excellence and innovation in every aspect of our relationship with you. We appreciate your partnership and look forward to an exciting second half of the year.
To continue reading, please download the full Moran Monthly Digest here.
Moran Monthly Digest: Aug. 2023
Dear Clients,
I hope this letter finds you well and that you are enjoying your summer to the fullest. As we venture into the second half of the year, I wanted to take a moment to share some important updates and news from our organization.
Firstly, our summer internship program has come to a successful conclusion. We had the privilege of hosting a talented group of interns who brought fresh perspectives and enthusiasm to our organization. We are currently working on a feature highlighting their experiences during the internship, so keep a look out for that in your inbox.
With the summer coming to a close, we are eagerly preparing for next season in Naples, including our Welcome Back Receptions and Client Dinners. Save the dates will be sent sometime next month, and we are looking forward to welcoming you.
Lastly, please be sure to check out Senior Portfolio Manager Tyler Hardt’s economic commentary in this month’s newsletter. To summarize, we are growing concerned about stretched valuations of mega-cap stocks which are pricing in not just a soft-landing, but also significant economic growth and earnings power. The average P/E ratio of the “magnificent seven” stands at 42x expected earnings.
Our primary concern lies in the weight of these stocks within the S&P 500 that are contributing to significant market overvaluation. We believe any reversal in their valuations could lead to significant drawdowns in both the S&P 500 and Nasdaq. These factors underscore the importance of strategic wealth management to safeguard portfolios and identify opportunities amidst market volatility.
However, not all stocks are overvalued. With the other 493 stocks of the S&P 500 trading closer to 15x, there are opportunities for high-quality companies at attractive valuations, offering compelling returns. As a firm, we remain prepared to seize opportunities within the current market dynamics.
In conclusion, your trust has fueled our journey so far, and we are committed to delivering excellence and innovation in every aspect of our relationship with you. We appreciate your partnership and look forward to an exciting second half of the year.
To continue reading, please download the full Moran Monthly Digest here.
This commentary is for informational purposes only and does not constitute investment advice, a recommendation, or an offer or solicitation to buy or sell any securities. The views expressed are those of the author(s) as of the date of publication and are subject to change without notice. Past performance is not indicative of future results.
This material may have been prepared using data and analysis from a variety of sources, including but not limited to: Bloomberg, FactSet, Morningstar, S&P Global, Moody’s, Refinitiv, Capital IQ, CRSP, FRED, IMF, World Bank, OECD, and other third-party research providers. Additionally, portions of this content may have been generated or reviewed with the assistance of artificial intelligence tools, including OpenAI’s large language models or similar technologies. While we believe these sources to be reliable, we do not guarantee their accuracy or completeness.
Moran Wealth Management is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training. For more information about our services, fees, and potential conflicts of interest, please refer to our Form ADV Part 2A, available upon request.