So far this earnings season 66.7% have beaten expectations. That is slightly higher than the norm of around 66%. This week 77 constituent companies of the S&P 500 are to report 2Q earnings dominated by financial sector. Though only 40% of the revenue releases are currently beating estimates, revenue growth is still on track to be up nearly 6% y/y.
The major indexes were up 3%+ last week. Waiting for an attractive pullback has been a frustrating experience year-to-date. While the second half of June presented an opportunity, the bottom was “V” shaped giving investors only a day or two to buy in at the best prices. Fund flows are into U.S. equities. Funds follow performance. With the S&P 500 up double digits for the second year in a row, the market is showing strong momentum. To gain broad exposure to the rising market, consider buying the equally weighted S&P 500 ETF (RSP) – Rydex Guggenheim S&P Equal Weighted Index Fund.