Golden Eagle Eye on The Stock Market

CIO Robert Zuccaro discusses how there are no guarantees in the investment business, only probabilities. 

Robert Zuccaro, CIO & Founder of Golden Eagle Strategies, addresses hot topics in the investment community around potential recession, a stock market crash, the debt ceiling, and why investors should rethink keeping assets in cash.

If you look at the first quarter, you will see that the S&P was up 7%. And of the gain in the S&P, the 20 biggest stocks accounted for an increase of $2.1 Trillion in net worth of the S&P. If you look at the other 480 stocks in the S&P, they have contribute a gain of not $2.1 Trillion but in aggregate gain of a mere $170 Billion. So the gains in the market have been compressed into a handful of companies, and these handful of companies have among the worst earnings trajectories, and in a lot of cases, they've been reporting negative earnings growth.So the hallmark of top-performing stocks is profits growth. It has nothing to do with P/Es – and one of the arguments today against the stock market is that the P/E for the stock market has gone up and the stock market is selling at a historically high P/E of 21-22 times. Now, the flies in the ointment here is that we have entered an era of permanently high P/Es in the stock market because of the impact of technology not only on the economy and the business landscape but also on the stock market.Was 2008 a good year or a bad year for the stock market? Profits dropped 40% in 2008. When profits drop, the P/E expands exponentially and the highest P/E in the stock market is when corporate profits are at their worst. So, the other fly in the ointment about this observation about a high P/E, corporate profits right now are trending down, which means that all things being equal, the market is staying the same and going nowhere - the P/E has to go only one direction and that’s up.  Debt ratios don't matter.Price to book doesn't matter.Return-on-Equity doesn't matter. Every one of these ratios, which is widely used, is a snapshot in time. And all you need to know about these ratios: If profits are going up, the return on equity is going up.If profits are going up, the debt ratio is going down because you're paying down debt. All these ratios are subservient to profits growth rate. And most of the world doesn't know this, 80% of the world wants to rely on P/E but it's the wrong metric.

The S&P 500 Index advanced 7.5% while the Nasdaq Composite Index shot up 17.0%. CIO Robert Zuccaro shares what moved the markets and how Golden Eagle performed.

A review of current economic indicators and what they suggest for the economy.

Our view is that we may be entering a new bull market based on five key pillars.

CIO Robert Zuccaro shares why we believe big tech is "dead".

We look back at bull and bear markets since 1973 and discuss how hypergrowth stocks, or aggressive growth stocks, have performed vs the S&P. 

Robert Zuccaro, Founder, and CIO of Golden Eagle Strategies, discusses the outlook for the global economy and why he believes investors should not diversify.“If anything, the outlook for the rest of the world is less robust than it has been in the past. I'm one of the few individuals in the investment business that will argue against diversification.”

Today we feature some untold facts and stories about the economy, stock market and the aggressive growth investment style. Robert Zuccaro, Founder & CIO of Golden Eagle Strategies, also shares his evolving outlook on the stock market for the remainder of 2022. Learn why the stock market dramatically changed 50 years ago, why this recent bear market was so severe, and why we believe the next bull market is on the horizon. The Golden Eagle Eye podcast is dedicated to bringing you unconventional wisdom on the stock market predicated on statistical analysis and principles derived from more than 40 years of research.

Is oil the new FAANG? Are we still in a tech-wreck? Learn why data is so powerful in stock selection, what unexpected growth trends we've uncovered, and how growth isn't always found where investors look for it. Today, we have Marc Zuccaro, Principal of Golden Eagle Strategies, who has focused on institutional design of algorithmic systems for two decades. The Golden Eagle Eye podcast is dedicated to bringing you unconventional wisdom on the stock market predicated on statistical analysis and principles derived from more than 40 years of research.

Learn about the real culprit behind inflation, what we fail to keep in mind when addressing the rise in interest rates, and why stocks still trump bonds. Today, we have Robert Zuccaro, Founder & CIO of Golden Eagle Strategies, sharing thought-provoking ideas about war, inflation, and rising interest rates. The Golden Eagle Eye podcast is dedicated to bringing you unconventional wisdom on the stock market predicated on statistical analysis and principles derived from more than 40 years of research.