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
Lower-than-expected corporate earnings, uncertainty of Japanese elections and possible delays in further rate cuts - October 25, 2024
- Posted By: Editorial Team
Global Markets ended lower this week weighed down by weak corporate earnings and political uncertainty in U.S. and Japanese elections. Comments by Federal Reserve officials indicated the adoption of a cautious data-driven approach to determine further lowering of rates as inflation figures continue to be monitored closely before any further decision is taken. Markets now anticipate the Fed to implement only a 25 bps rate cut, due to favorable inflation and unemployment numbers. Oil futures rose in response to the continuing tensions in the Middle East. Indian and Chinese leaders met to re-engage politically, on the sidelines of the BRICS summit in Kazan, Russia.
Global Updates
- The MSCI All Country World Index significantly underperformed this week with the sharp fall in American markets, weighed down by underwhelming corporate earnings and rising treasury yields. European, Asian and Emerging markets were lower, while the Nikkei 225 and Topix indices also dipped due to political uncertainty regarding the upcoming elections in Japan.
- The U.K. GfK Consumer Confidence index fell to its lowest levels for the year, in October. The potential tax hikes in the upcoming budget impacted the optimism of households and businesses. German business confidence also improved in October as manufacturing finally expanded after many consecutive months of contraction.
- Oil Futures rose after news of a possible surplus from increased crude processing by the U.S. This was not sufficient to offset the continued expectation of a shortfall in energy demand from China.
- Barclays’ stock rose to a nine-year high after it reported a 23% jump in third-quarter profits to $2 billion, driven by the performance of its UK and investment divisions along with cost-cutting measures implemented this quarter. Barclays is set to completely takeover the banking division of Tesco in the next week.
- French jet engine manufacturer Safran has raised fuller profit guidance and lowered revenue guidance simultaneously. Safran’s revenue from aftermarket services has grown 26.2% and core propulsion grew 11.9% in the January to September period. This growth is driven by 17% higher sales in the same period. The company lowered revenue predictions due to supply bottlenecks.
- Germany company SAP’s third-quarter revenue of $9.17 billion surpassed expectations, due to a 9% quarterly growth driven by a 25% rise in sales from its cloud computing division.
- The French Luxury company reported 11.3% growth in quarterly revenue to $3.99 billion, in line with estimates.
- Chinese autonomous driving startup Pony.ai has filed for an IPO in the U.S.A with the Securities and Exchange Commission. The company also opened its first European R&D center in Luxembourg in a tie up with Emile Weber, to promote and deploy their autonomous technology and vehicles in Europe.
U.S. Equity
- The S&P 500, Dow Jones index & NASDAQ indices dipped this week. Earlier in the week, markets were weighed down by the poor performance of IBM, Honeywell, Boeing, and McDonald’s. Markets were buoyed up by the third-quarter results of Tesla, later in the week. The earnings reports of most companies have been underwhelming for investors so far, leading to the indices declining for three consecutive days. Markets were also pressured by higher treasury yields affecting U.S. stock futures.
- U.S. private sector activity has risen, in an auspicious start to the fourth quarter. The expansion is primarily driven by the service sector offsetting the contraction in manufacturing activity. Unemployment claims also fell to 227,000 by 15,000 claims in the previous week indicating a decline in unemployment.
- Federal Reserve officials foresee slower rate cuts in the near future, as there is increasing chatter that the jumbo cut of 50 bps in September was possibly premature.
- Tesla stock gained following the release of higher-than-expected earnings and close-to-expected revenues. Tesla revenue rose by 8% to $25.18 billion, and net income rose to $2.17 billion. Elon Musk projected a 20% - 30% vehicle growth due to lower costs and autonomous technologies.
- Boeing stock lagged following the extension of a six-week strike by the machinist union after the rejection of the deal offered by the company.
- IBM stock also fell due to third quarter revenue falling short of estimates due to the weak performance of its consulting business. The revenue grew only 1% to $14.97 billion.
- Southwest airlines reported 5.3% year-to-year growth to a record $6.87 billion in operating revenue for the third quarter. The company’s higher than expected profits declined to $67 million due to high labor costs.
- Coca-Cola reported a 1% decrease in third quarter revenue, falling to a higher-than-expected $11.9 billion. The company projected a 10% growth in full-year revenue in line with forecasts.
- Starbucks has suspended its 2025 outlook due to disappointing third quarter outcomes. The company’s revenue declined by 3% to $9.1 billion and adjusted earnings fell 24.5% to 80 cents per share. Starbucks’ new CEO Brian Niccol has addressed the concerns of investors and employees and mentioned implementation of a new strategy designed to turn the company around.
- Honeywell stock declined due to a 5% dip in the sales of its Industrial Automation division weighed by the decline in demand for its products. The company lowered its full-year sales outlook despite a 6% growth in revenues to $9.73 billion. The company’s adjusted Earnings per Share of $2.58 was higher than early projections.
- General Motors shares surged after the company’s quarterly net income of $3.3 billion exceeded expectations by 28%. The company has also raised its full-year guidance.
Fixed Income
- The Bloomberg U.S. Aggregate Bond Index dragged this week.
- The U.S. 10-year Treasury yield rose to 4.17% and the yield on the 2-year note rose up to 4.05% over the week. Yields rose as markets digested the Federal Reserve’s comments on the trajectory of future rate cuts.
- The U.S. Dollar Index rose to 104.04 this week.
Sources
- iShares Core Global Aggregate Bond UCITS ETF | AGGG
- US10Y: 4.682% -0.024 (-0.51%) (cnbc.com)
- US2Y: 4.989% -0.009 (0.00%) (cnbc.com)
- SPX | S&P 500 Index Overview | MarketWatch
- iShares Core S&P 500 ETF | IVV
- S&P Total Market Index | S&P Dow Jones Indices (spglobal.com)
- US Dollar Index (DXY) – Investing.com India
- MSCI AC World Equity Index – Investing.com India
- Global Markets ended lower this week weighed down by weak corporate earnings and political uncertainty in U.S. and Japanese elections. Comments by Federal Reserve (Fed) officials indicated the adoption of a cautious data-driven approach to determine further lowering of rates.
- A terror attack on a Turkish defense company in Ankara, killed five people
- Turkey responded by launching airstrikes on Kurdish camps in Iraq and Syria.
- Hezbollah launched a drone attack on Israeli premier Benjamin Netanyahu’s home
- Indian and Chinese leaders met to reengage politically, on the sidelines of the BRICS summit in Kazan
- MSCI All Country World Index significantly underperformed this
- The Nikkei 225 and Topix indices also dipped due to political uncertainty regarding the upcoming elections in Japan
- The U.K. GfK Consumer Confidence index fell to its lowest levels for the year, in October
- German business confidence has also improved in October due
- Barclays’ stock rose to a nine year high after it reported a 23% jump in third quarter profits to $2 billion driven by the performance
- Barclays is set to completely takeover the banking division of Tesco in the next week
- Safran’s revenue from aftermarket services has grown 26.2% and core propulsion grew 11.9% in the January to September period
- Germany company SAP’s third quarter revenue of $9.17 billion surpassed expectations
- The French Luxury company reported 11.3% growth in quarterly revenue to $3.99 billion
- Chinese autonomous driving startup Pony.ai has filed for an IPO in the U.S.A with the Securities and Exchange Commission.
- company also opened its first European R&D center in Luxembourg in a tie up with Emile Weber,
- Oil Futures rose due to the persistent geopolitical conflict in the middle east.
- Earlier in the week, markets were weighed down by the poor performance of IBM, Honeywell, Boeing and McDonald’s
- Markets were also pressured by higher treasury yields
- U.S. private sector activity has risen, in an auspicious start to the fourth quarter.
- Unemployment claims also fell to 227,000 by 15,000 claims in the previous week
- Tesla stock gained following release of higher-than-expected earnings and close-to-expected revenues.
- Boeing stock lagged following the extension of a six-week strike by the machinist union
- IBM stock also fell due to third quarter revenue falling short of estimates
- Southwest airlines reported 5.3% year-to-year growth to a record $6.87 billion in operating revenue
- The company’s higher than expected profits declined to $67 million due to high labour costs
- Coca-Cola reported a 1% decrease in third quarter revenue, falling to a higher-than-expected $11.9 billion
- Starbucks has suspended its 2025 outlook due to a disappointing third quarter outcomes
- Honeywell stock declined due to a 5% dip in the sales of its Industrial Automation division weighed by the decline in demand for its products.
- General Motors shares surged after the company’s quarterly net income of $3.3 billion
- Bloomberg U.S. Aggregate Bond Index dragged this week
- 10-year Treasury yield rose to 4.17%
- yield on the 2-year note rose up to 4.05%
- Yields rose as markets digested the Federal Reserve’s comments on the trajectory of future rate cuts.
- U.S. Dollar Index rose jumped
HCM-030624-063.GWS
Wealth Watch: From the desk of Vance Howard
Sector Spotlight – Let’s Talk Financials, Airlines, And Bitcoin
- Posted By : Vance Howard October 18, 2024
The HCM-BuyLine® is positive, and a pullback should be seen as buyable. We have 18 days left until the election and it’s anybody’s guess as to who will win. Look for the market to either get very slow, meaning not a lot of movement, or on the other hand a lot of volatility as traders and investors try to game the outcome.
As the chart shows, the 20-year bond ETF (TLT) has dropped significantly, and a tradable opportunity could be setting up. Rates have risen organically but are now overbought and a snapback rally could be in the making. 10-year yields are responding appropriately to their recent overbought conditions. Remember, overbought conditions in downtrends tend to be more effective than overbought conditions in uptrends, so we like what we’re seeing.
Several positive volatility alerts were triggered in financials on Wednesday, look at U.S. Bancorp (USB) and Morgan Stanley (MS) which are breaking out to the upside. But, we are also seeing some improvement in the airlines with both (DAL) Delta Airlines and the Global Jets ETF (JETS) which are showing positive breakouts from big base formations.
Also, the iShares Bitcoin ETF (IBIT) is trying to move higher. If we can get a breakout above $40/share look for Bitcoin to make a strong move to the upside. If you watch Bitcoin, it will bring out the bullish spirits of a lot of investors and traders when it starts to move higher.
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?
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.