Luca Prete @thor1980: "𝗔𝗥𝗘 𝗠𝗔𝗥𝗞𝗘𝗧𝗦 𝗧𝗢𝗢 𝗛𝗜𝗚𝗛 𝗔𝗡𝗗..."

Italy

𝗔𝗥𝗘 𝗠𝗔𝗥𝗞𝗘𝗧𝗦 𝗧𝗢𝗢 𝗛𝗜𝗚𝗛 𝗔𝗡𝗗 𝗢𝗩𝗘𝗥𝗟𝗩𝗔𝗟𝗨𝗘𝗗? Financial markets are currently near their highest levels, and many investors are asking a simple question: have prices become too high? Is the market overvalued? To answer that question, intuition is not enough. We need to look at the actual data. Over the medium and long term, markets are mainly driven by corporate earnings. News can move prices in the short term, but over time it is companies’ financial results that truly matter. This is why earnings season is so important: it helps us understand how the companies in the S&P 500 — the 500 largest listed U.S. companies — are really performing. 𝗪𝗵𝗮𝘁 𝗮𝗿𝗲 𝘁𝗵𝗲 𝗻𝘂𝗺𝗯𝗲𝗿𝘀 𝘀𝗵𝗼𝘄𝗶𝗻𝗴? The results have been very strong. •More than 80% of companies reported earnings above analysts’ expectations. •On average, earnings exceeded forecasts by more than 18%. •Historically, the average positive surprise is around 7%. So this quarter’s results were significantly better than usual. Growth compared to the same period last year has also been strong: • Earnings: +27% • Revenues: +11% This means that many companies are not only making more profits, but are also selling more products and services. And this growth is not limited to one sector — it is fairly widespread across the entire S&P 500. 𝗦𝗼, 𝗮𝗿𝗲 𝗰𝘂𝗿𝗿𝗲𝗻𝘁 𝗺𝗮𝗿𝗸𝗲𝘁 𝗹𝗲𝘃𝗲𝗹𝘀 𝗷𝘂𝘀𝘁𝗶𝗳𝗶𝗲𝗱? To a certain extent, yes. The data confirms that the U.S. economy and large corporations are showing resilience. The market therefore does not appear to be “floating without support.” However, there is an important point to consider: some companies’ stock prices have risen much faster than their actual business results. This suggests that part of the expected future growth has already been priced into the market. In other words, investors are already betting on very strong future growth. 𝗧𝗵𝗲 𝘀𝗶𝘁𝘂𝗮𝘁𝗶𝗼𝗻 𝗶𝗻 𝗘𝘂𝗿𝗼𝗽𝗲 In Europe, the picture is weaker and more stable. Companies within the MSCI Europe index are showing: •earnings growth slightly above +5% •largely flat revenues •results mainly supported by the energy sector So Europe is growing, but at a much slower pace than the United States. 𝗔𝗻𝗼𝘁𝗵𝗲𝗿 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝗽𝗼𝗶𝗻𝘁: 𝗺𝗮𝗿𝗸𝗲𝘁 𝗴𝗮𝗶𝗻𝘀 𝗮𝗿𝗲 𝗰𝗼𝗻𝗰𝗲𝗻𝘁𝗿𝗮𝘁𝗲𝗱 Although many companies are growing, the rise in the market has been driven mainly by a small number of large companies. Over the last two months, around half of the S&P 500’s gains came from just five stocks: • Alphabet • Nvidia • Amazon • Broadcom • Apple This means the market is moving higher, but not evenly: performance is becoming increasingly concentrated in a few major companies. 𝗪𝗵𝗮𝘁 𝗱𝗼𝗲𝘀 𝘁𝗵𝗶𝘀 𝗺𝗲𝗮𝗻 𝗳𝗼𝗿 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀? Recent earnings reports confirm that U.S. companies are delivering solid results and that earnings continue to support the market. At the same time: •valuations have become more demanding; •market gains are concentrated in a few stocks; •part of future growth expectations is already reflected in current prices. For this reason, building portfolios carefully is becoming even more important. Investors should diversify across asset classes, sectors, and individual holdings, avoiding excessive concentration in a single market or a small number of companies. @thor1980 Disclaimer: The data and comments provided are for informational purposes only and are not intended as personalized advice. The author assumes no responsibility for losses, damages, or lost profits resulting from the use of this information. Investment decisions are made independently. Please note that invested capital is always at risk. Therefore, investors are advised to consult a qualified financial advisor before making any investments. #proinvestor #etoro #investing $NSDQ100 $SPX500 $OKLO (Oklo Inc) $NNE (Nano Nuclear Energy Inc) $ASTS (AST SpaceMobile Inc) Portfolio results: in may report a gain of +15,88% and 31% YTD. June start with downside. -4% progressive at this time. But strategy and momentum will give us interesting returns during the month. Stay tuned and have a good night.

Not investment advice. The author may have financial interests in the mentioned instruments.