Investment Review - October 2023
- The major US stock indices declined in value in September. The Dow Jones Industrial Average was down 3.5%, the S&P 500 declined by 4.9%, and the Nasdaq Composite retreated by 5.8%.
- The US Dollar Index continued its recent rise, increasing by 2.51% in September. This index measures the value of the US dollar versus six major foreign currencies. A stronger dollar decreases the cost of imports, increases the price of exports to foreign purchasers, and decreases the value of overseas revenues and profits earned by US corporations with international operations.
- For 2023, the consensus among S&P 500 analysts is expected growth of earnings by 1.9%, revenues by 2.5% and cash flow by 4.2%. Analyst consensus expectations for 2024 call for continued S&P 500 growth as follows: earnings 12.1%, revenues 5.3% and cash flow 13.1%. Mid- and long-term stock performance correlates well with earnings, revenue, cash flow and expected growth. If the economy slows, 2024 expectations are likely to be revised lower.
Key Investment Statistics
Disclosure: This commentary reflects the opinions of Welch & Forbes based on information that we believe to be reliable. It is intended for informational purposes only, and not to suggest any specific performance or results, nor should it be considered investment, financial, tax or other professional advice. It is not an offer or solicitation.
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