Howard Capital Management Reviews - Wealth Watch & Global Weekly Summary

Tailored Investment Solutions from Howard Capital Management and J. Martin Wealth

Located in Roswell, Georgia, Howard Capital Management (HCM) is an SEC-Registered Investment Advisor Firm. They aim to deliver professional money management solutions to individuals seeking growth while maintaining a prudent investment approach. The firm offers the use of the HCM-BuyLine®, developed by Vance Howard, CEO and Portfolio Manager at Howard Capital Management Inc., which has been their cornerstone since 1996. This unique stop-loss safeguard is crafted to provide timely guidance during market volatility. The HCM-BuyLine® effectively reduces downside risk by moving from equities to cash and cash equivalents while actively identifying opportunities to boost equity exposure during a market upswing.

J. Martin Wealth, based in Arizona, provides fiduciary financial advice tailored to help you meet your financial goals. Led by Jeff Martin, our team focuses on personalized investment strategies that align with your risk tolerance, time horizon, and unique objectives. Whether planning for retirement, managing your investments, or seeking comprehensive financial guidance, we are here to provide solutions that put your best interests first. Serving clients in Gilbert, Chandler, Maricopa, and throughout Arizona, we are committed to delivering transparent, client-centered service.

Howard Capital - Global Weekly Summary

Markets continue to rise unaffected by the ripples from global geopolitical changes - December 6, 2024

  • Posted By : Nickhcm

Global markets continued to rise, driven by higher-than-expected corporate earnings in the technology sector and the easing U.S. labor market. Salesforce and Marvell Technologies reported earnings growth driven by AI demand. Federal Reserve Chairperson Jerome Powell expressed his optimism regarding the state of the U.S. economy. French Prime Minister Michel Barnier resigned after his government lost the parliamentary no-confidence motion. South Korean President Yoon Suk Yeol faces impeachment due to the brief imposition of martial law in the country. The Middle East continues to simmer,r with Syrian rebels gaining control of Aleppo and Hama. U.S. President-elect Donald Trump threatened BRICS countries with a 100% tariff if they pursue de-dollarization.

Global Updates

  • The MSCI All-Country World Index rose this week. European markets were higher despite political uncertainty in France. Germany recorded a drop in October’s industrial production due to declines in the energy and automotive sectors.
  • Bank of England Governor Andrew Bailey has signaled four interest rate cuts in 2025 conditional on easing inflation.
  • Volkswagen workers in Germany have gone on strike to protest the planned cuts in jobs and wages.
  • Seven & i Holdings Co. is considering an IPO for its U.S. assets as part of the $60 billion management buyout of the company.
  • Royal Bank of Canada raised dividends and reported a 7% growth in fourth-quarter profits beating analyst expectations.
  • Household spending in Japan fell by only 1.3% in October, which was better than expected.
  • Weak global demand for oil drove the OPEC+ countries to postpone planned supply increases and continue the current supply cuts to the end of 2026.
  • China has banned the export of critical minerals to the U.S. in response to the restrictions placed on its Chip industry.
  • The Indian central bank, the Reserve Bank of India, pumped liquidity into the economy but held interest rates unchanged due to inflation and slowing growth.

U.S. Equity

  • The S&P 500 & Nasdaq indices rose this week driven by better than expected corporate earnings. Markets digested Fed chair Jerome Powell’s optimism regarding the state of the American economy and slowdown in private sector hiring in November.
  • U.S. weekly jobless claims rose to 224,000. The trade deficit in October narrowed by 11.9% due to a 4% drop in imports. The decline was driven by lower imports of computers, semiconductors, industrial and capital goods, petroleum, and automobile parts.
  • Bank of America analysts raised the price target for Marvel Technology stock due to strong third-quarter revenue and higher than expected fourth quarter projected earnings driven by ‘custom AI’.
  • General Motors declared a $5 billion non-cash impairment for the company’s struggling China operations.
  • Salesforce reported higher than expected 8% growth in third quarter revenues to $9.44 billion. The company also raised the lower end of its annual revenue forecast.
  • Okta’s third quarter revenue beat due to 14% growth in revenues to $569 million. The company raised its fourth-quarter revenue estimates to the $667 million to $669 million range.
  • Southwest Airlines and American Airlines raised their fourth-quarter forecasts due to strong indicators for higher demand for holiday travels.
  • Super Micro Computer stock gained after the company reported no accounting discrepancies were found by an independent review committee.
  • BlackRock is close to finalizing a deal to acquire private credit manager HPS for $12 billion.
  • Commodities trader Cargill plans to cut 8,000 jobs weighed down by falling revenues.
  • Stellantis CEO Carlos Tavares abruptly resigned from his position, citing differences with the board of directors.
  • The optimism regarding crypto-friendly policies expected from the Trump regime drove Bitcoin across the $100,000 benchmark. Paul Atkins’ appointment to head the Securities and Exchange Commission drove the surge in optimism.

Fixed Income

  • The Bloomberg U.S. Aggregate Bond Index was in line this week.
  • The U.S. 10-year Treasury yield dipped slightly to 4.174%, and the yield on the 2-year note fell to 4.156% over the week.
  • The U.S. Dollar Index marginally declined to 105.78 this week.

HCM-030624-063.GWS

Wealth Watch: From the desk of Vance Howard

Fed, Jobs, and Stocks: The Trifecta Shaping Year-End Gains

  • Posted By: Vance Howard - December 9, 2024
NVIDIA Corp. (NVDA) Stock Chart - December 2024 Trends

The HCM-BuyLine® is positive, and the trend is up as investors are piling into stocks. We are positive on equities into year-end, and we expect a December rally to push the S&P 500 to 6,300. The recent run-up has been very satisfying, but as we all know, pullbacks are inevitable so let’s not be surprised when they occur. I do expect the market to march higher, but the odds are high that in the first quarter of 2025 we will see some consolidation, which should be expected.

The job market rebounded nicely in November from the weather and strike related distortions, a tad better than expected. Payrolls expanded by 227,000, slightly above the consensus of 214,000 and close to our forecast of 222,000. Additionally, the prior two months were revised up by 56,000, in line with our estimate of 50,000. The average workweek recovered to 34.3 hours from a downwardly-revised 34.2. Looking through the temporary distortions, the trend in payrolls growth and hours has clearly slowed.

Average hourly earnings rose 0.4%, bringing the y/y change to 4.0%, above expectations of 0.3% and 3.9%, respectively. The household survey was a little weaker with the unemployment rate ticking up to 4.2%, matching the consensus, but was just .004 points away from printing 4.3%. All-in-all, this report should keep the Fed on its rate normalization path in December, but also supports a slower pace of rate reductions in 2025.

We expect the Federal Reserve to remain dovish – that is, to remain in a cutting cycle. We would actually view a slower pace of cuts as a positive, as it means a longer cutting cycle. This would lengthen the time the Fed is dovish and therefore leave the “Fed put” in play for a longer period of time.

Apple Inc. (AAPL) Stock Chart - December 2024 Trends

Apple is breaking out, which is a great sign of strength as it is a major component of just about every index. Also look at Nvidia, which looks to be building up steam to break out.

The HCM-BuyLine® Explained

Would you like to see the history of the BuyLine® in action? Is this a different approach than what you are taking with your current financial advisor? Could the BuyLine® impact your financial plan?

Vance Howard CEO Howard Capital Management

Who is Vance Howard?

Vance Howard embarked on his professional career in the financial industry in 1992, establishing Chartered Financial Services, Inc. He subsequently founded Howard Capital Management, Inc. in 1999, a fee-only Registered Investment Advisor. Mr. Howard brings expertise in the analysis, creation, and execution of diverse trading strategies.

Prior to his focus on financial services, Mr. Howard founded Delta Waste Services in 1988, a waste management company he later sold in 1992. Additionally, he co-published investment-focused newsletters, "The Savvy Investor" and the "SI Intermediate-term Trader", which garnered an international readership across over 25 countries between 1992-1999.

Demonstrating a commitment to community, Vance has served on the Huntsville, Texas city council for four terms, including two terms as mayor pro tem. His civic involvement extends to roles such as Huntsville's City Finance Chairman, Chairman of the Huntsville/Walker County 911 Emergency Service, and board positions on the Houston/Galveston Economic Development Council and the District 910 Legal Grievance Committee. He is a former President and active member of the Huntsville Rotary Club.

Outside of the professional sphere, Vance collaborates with family members in the operation of the Bar C Ranch in Madisonville, Texas, where they specialize in raising registered longhorn cattle. His leisure interests include travel with his wife and children, cycling, kayaking, scuba diving, and hiking.

“We aim to take emotion completely out of the equation. Trading with emotions, in our opinion, ruins long-term returns.”

— VANCE HOWARD, CEO + PORTFOLIO MANAGER

Howard Capital Management, Inc, issues this communication. It is for informational purposes and is not an official confirmation of terms. It is not guaranteed as to the accuracy, nor is it a complete statement of the financial products or markets referred to. Opinions expressed are subject to change without notice. Howard Capital Management, Inc. may maintain long or short positions in the financial instruments referred to and transact as principal or agent. Unless explicitly stated otherwise, this is not a recommendation, offer, or solicitation to buy or sell, and any prices or quotations contained herein are indicative only. To the extent permitted by law, Howard Capital Management, Inc. does not accept any liability arising from using this communication. Howard Capital Management is an SEC-registered investment advisor that only does business where it is properly registered or is otherwise exempt from registration. SEC registration does not constitute an endorsement of the firm by the Commission nor indicates that the advisor has attained a particular skill or ability. Past performance is no guarantee of future results.

This newsletter is a publication of Howard Capital Management, Inc. It should not be regarded as a complete analysis of the subjects discussed, nor should the newsletter be construed as personalized investment advice. All expressions of opinion reflect the author's judgment as of the publication date and are subject to change. It should not be viewed as legal or tax advice. Always consult an attorney or tax professional regarding your legal or tax situation. There can be no guarantee that the HCM-BuyLine® indicator will perform as anticipated. Stoploss protection will not necessarily limit your losses to the desired amounts due to the limitations of the HCM-BuyLine®, market conditions, and delays in executing orders. It is not an actual stop-loss order that automatically sells securities in the portfolio at a certain price.