Business
All Blog Posts from Business
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P&G resilience in times of turmoil
Our Outlook
There are certain things in life that are generally known by all. For instance, the sky is blue, bananas are yellow, grass is green, and P&G is a defensive investment in times of uncertainty. What does that mean? When economic uncertainty rises, investors generally seek safe (or safer) havens. A safe haven is an investment […]
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It’s Tax Season, Can You Still Reduce Last Year’s Tax Bill?
Our Outlook
Every January ushers in a new tax year, and it’s when we all begin the process of closing out last tax year. As you start gathering the annual alphabet soup of tax reports (W2, 1099-R, 1099-INT, K-1, etc…), take note of what income sources you can control in whole or in part. Even though 2021 […]
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Questions on Inflation and Employment
Our Outlook
January Non-Farm Payrolls (NFP) jobs expectations were for +150,000 new jobs and an unemployment rate of 3.9% (here). Reported new jobs tripled expectations coming in at +467,000 (here). The unemployment rate ticked a bit higher to 4.0% as more workers came back into the labor market. On its surface the NFP report looks great; however, […]
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Market Quick Stats – January 2022
Our Outlook
The S&P 500 finished down (-5.2%) in January, the worst start since a (-9.8%) loss in January 2009. Notable S&P 500 decliners in January included, Moderna (-33.3%), and Netflix (-29.1%). The 30 stock Dow Jones Industrial Average saw its biggest declines in Cisco Systems (-12.1%), Home Depot (-11.5%), and Nike (-11.1%). Taking a sneak peek […]
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PG Q2 2022 Earnings Commentary
Our Outlook
On January 19, 2021 Procter & Gamble reported 2nd quarter 2022 earnings results (see press release here). For the quarter, the company reported 6% top line revenue growth to $20.9 Billion versus last year. Diluted earnings per share (EPS) in Q2 was $1.66 vs. a $1.65 consensus estimate and up from $1.64 a year ago […]
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PG Stock Valuation
Our Outlook
Procter & Gamble shareholders enjoyed a 20.0% total return in calendar year 2021 and the third 20% plus return since 2012. Shareholders suffered only one calendar year stock price decline over the past ten years, and that was in 2015. Significant foreign exchange conversion woes and a volume growth malaise were the culprits then and […]
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Inflation Update
Our Outlook
Inflation figures through the most recent reporting period ended November 2021, saw the Consumer Price Index (CPI) for All-Items rise 6.8% over the past twelve months. According to the BLS, this is the largest 12-month increase since 1982. Inflation readings for Energy rose 33.1% and Food rose 6.1%. Both are the largest 12-month increases in […]
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Consumer Goods – Post Pandemic
Our Outlook
It’s no secret that the COVID pandemic and related government mandated shutdowns created winners and losers. Businesses that were deemed essential were generally winners and those deemed non-essential were generally losers as they were shut down to varying degrees. Clearly, restaurants, restaurant suppliers, hotels, airlines, and other travel related companies were impacted the most negatively. […]
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Market Quick Stats – November 2021
Our Outlook
November’s S&P 500 total return of -0.69%, was a tad negative. However, the 30 stock Dow Jones Industrial Index fell -3.5% driven by declines in 25 of the 30 companies in the index. Looking toward December, fears of a December 15th US debt ceiling limit will likely resurface. And, markets will be focused on Chairman […]
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Tax Efficient Investing Tips
Our Outlook
In December, we all get busier preparing for the holidays, buying gifts, attending holiday parties, traveling to see family, and spending more time with children and grandchildren. It can be easy to forget about planning and investments for a while. However, amidst the holiday hustle & bustle you don’t want to overlook your annual opportunity […]
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Supply/Demand Imbalances
Our Outlook
Global supply chain issues are both a supply and a demand problem. On the supply side, labor has become scarce. Pandemic related mandatory shutdowns, COVID quarantines, and older worker retirement decisions have combined to create a serious labor shortage. In the October National Association of Business Economics (NABE) survey, 47% of respondents reported a shortage […]
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Investing & Planning
Our Outlook
Each Halloween, or ‘All Saints Eve’, ushers in All Saints Day on November 1st. In Christian traditions, both All Saints Day and All Souls Day (November 2nd) are annual reminders of our own mortality. This makes each November a good time for investors to review their beneficiary designations. Make it habit to set aside an […]
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Market Quick Stats – October 2021
Our Outlook
Fears sparked by reports of a possible default at China’s Evergrande, and the impending US debt ceiling limit drove the S&P 500 to a -4.6% loss in September. How quickly fears faded after Evergrande averted default (for now) and congress extended the debt ceiling limit to December 3rd. These thaws and strong Q3 corporate earnings […]
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P&G Q1 fiscal year 2022 Earnings Results
Our Outlook
On October 19th, 2021 Procter & Gamble reported 1st quarter results for fiscal year 2022 (see press release here). The company reported net sales of $20.3 billion, representing 5% top line revenue growth versus Q1 2021. Looking at sequential quarters, top line growth slowed from the 7% pace posted in Q4 2021. Diluted GAAP earnings […]
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Supply Chain Disarray
Our Outlook
Global Shortages Semiconductor chip shortages impacting the auto industry are well documented, but how bad are they? Apparently, bad enough that respected German firm Bosch believes global semiconductor supply chains for the auto industry are no longer “fit” for their original purpose. Moore’s Law Over the past few decades, Moore’s Law has played out, and […]
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P&G CEO Transition, What to Expect?
Our Outlook
CEO Transition As David Taylor’s tenure as CEO comes to completion on November 1st, Jon Moeller will take over responsibilities as Chief Executive Officer and President at Procter & Gamble. David Taylor will move to Executive Chairman of the Board (here). The company has seen a fair amount of turnover in the CEO position since […]
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Bond Rates Are Declining, Why?
Our Outlook
What are Lower Yields Telling Us? On March 19, 2021, the benchmark ten-year US Treasury bond closed yielding 1.74%. By the first trading day in August the bond’s yield had dropped to 1.20%. With all of headlines and talk about rising inflation, why have bond yields dropped so significantly since March? The bond market and […]
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Market Quick Stats – July 2021
Our Outlook
Back to Normal? Not So Fast… Just as most restaurants and business in cities with the most stringent COVID precautions/restrictions started to re-open, some of those locations are introducing new COVID precaution/restriction measures. For example New York City mayor Bill de Blasio recently announced mandatory vaccinations for all newly hired NYC government employees and for […]
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P&G 2021 Q4 & Year End Earnings
Our Outlook
On July 30th, 2021 Procter & Gamble reported 4th quarter & fiscal year-end 2021 earnings results (see press release here). For the quarter, the company reported 7% top line revenue growth to $18.9 Billion versus last year. Diluted earnings per share (EPS) in Q4 was $1.13 vs. a $1.08 consensus estimate. Overall ‘organic’ revenue increased […]
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How to Look at Market Valuations
Our Outlook
What is a “Fair” Price for Stock Before you buy or invest in stock, you’ll want to answer the question: Are stocks valued appropriately for the current level of economic activity or expected level of activity over the next twelve months? You can think about stock valuations a little like you might think about a […]
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Is 2021 Back to Normal Yet?
Our Outlook
(Re) Open For Business Here we are halfway through 2021. Restaurants and business throughout the nation are re-opening. How is this return to normal playing out in the economy and stock and bond markets? As of June 30th, according to S&P Dow Jones Indices, the S&P 500 index of US stocks is up 15.2% year-to-date (YTD). […]
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Focus on Personal Finances
Our Outlook
High Debt Levels Higher levels of corporate, government, and personal debt may be creating a more fragile economic environment. In past decades, low debt was considered prudent and desirable. Today, fiscal policies pursued by the US Federal government have pushed our national debt over $28 trillion, and zero interest rate (ZIRP) monetary policies of the US […]
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What About Bitcoin?
Our Outlook
Crypto Curiosity Record breaking prices propelled Bitcoin into the mainstream news this spring. We have fielded more and more questions about cryptocurrencies in general and Bitcoin specifically. It appears likely that blockchain technology and maybe some cryptocurrencies may survive. Ultimately, how they are regulated and how widely they will be used as currency or for […]
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Taxes & Energy Policy
Our Outlook
Individual Tax Rates The current US government administration is considering raising taxes for individuals & families, corporations and even estates. A recent CNBC article discussed how the Biden administration is looking to raise the top marginal tax bracket to 39.6% from 37.0%. Coupled with this is the likelihood of lower income thresholds for each tax […]
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Inflation and the Economy – 1st Half 2021
Our Outlook
Inflation – Persistent or Transitory? One of the biggest financial news themes this year has been inflation. There is no question that price inflation is on the rise. Is it here to stay, or will recent increases be short-lived and transitory? Each month, a US government agency called the Bureau of Labor Statistics (BLS) measures […]
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PG Q3 2021 Earnings Results
Our Outlook
On April 20th, 2021 Procter & Gamble reported 3rd quarter 2021 earnings results (see P&G’s press release here). For the quarter, the company reported top line revenues of $18.1 Billion; up 5% versus last year and beating the $17.9 Billion consensus revenue estimate. Diluted earnings per share in Q3 was $1.26 vs. a $1.19 consensus […]
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P&G Q1 2021 Earnings Results
Our Outlook
On October 20th, 2020 Procter & Gamble reported 1st quarter 2021 earnings results (see P&G’s press release here). For the quarter, the company reported top line revenues of $19.3 Billion, beating the $18.3 Billion consensus estimate and diluted earnings per share were $1.63 vs. the $1.43 consensus estimate. First quarter 2021 net sales growth was […]
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September 2020 Non-Farm Payroll Employment (NFP)
Our Outlook
On October 2nd, 2020 the Bureau of Labor Statistics (BLS) reported that September Non-Farm Payroll Employment rose by 661,000 new jobs and the unemployment rate fell by 0.5% to 7.9% (see full release here). The unemployment rate dropped below the key 8% level although job gains were below estimates forecasted by Marketwatch at 810,000. September represents […]
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Thoughts on Your P&G October LTIP Award & Choices
What’s New Procter & Gamble employees who are normally eligible for the LTIP award in February, will now be receiving the award in the preceding October. Eligible employees have the opportunity to choose either RSU’s, Stock Options, or a combination of both in 25% increments. Consult your P&G compensation department and online resources for your […]
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August 2020 Non-Farm Payroll Employment (NFP)
On September 4th, 2020 the Bureau of Labor Statistics (BLS) reported that August Non-Farm Payroll Employment rose by 1.4 million new jobs and the unemployment rate fell by 1.4.% to 8.4% (see full release here). The unemployment rate drop was better than forecast and total job gains where about in-line with estimates. August represents the […]
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July 2020 Non-Farm Payroll Employment (NFP)
On August 7th 2020 the Bureau of Labor Statistics (BLS) reported that July Non-Farm Payroll Employment rose by 1.763 million new jobs and the unemployment rate fell by 0.9% to 10.2% (see full release here). Both the job gains and the unemployment rate drop were better than forecasted. July represents the third 1 million+ job […]
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P&G Q4 & Full-Year 2020 Earnings Results
Our Outlook
On July 30th, 2020 Procter & Gamble reported their 4th quarter and Full-Year 2020 earnings results (see P&G’s press release here). For the quarter, the company reported top line revenues of $17.7 Billion, beating the $17.0 Billion consensus estimate, and bottom line ‘core’ earnings of $1.16 besting the $1.01 consensus eps estimate. For the year, […]
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Procter & Gamble Reports 2019 Q4 and Full-Year Earnings
Our Outlook
Procter & Gamble Q4 & Full-Year 2019 Earnings
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Much Ado About Tariffs
Our Outlook
Recently announced tariffs on steel & aluminum imports has created an economic commentary uproar. Should you be concerned?
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P&G adds Nelson Peltz and Joseph Jimenez to Board of Directors
Our Outlook
Procter & Gamble adds Nelson Peltz and Joseph Jimenez to Board of Directors
