Howard Capital Management

Howard Capital Management Reviews - Weekly Update - February 13, 2024

Markets Remain Strong As Economy Continues to Expand

1 year chart of ETF: SPY

The markets are strong, the HCM-BuyLine® is positive, and pullbacks should be seen as buying opportunities. Technology, small caps and the financial sector are what we see as the three areas that could have higher odds of outperformance in 2024.

The growth rate of the U.S. economy in the fourth quarter was downgraded slightly to a 3.2% annual pace, but the economy is still expanding at a rapid clip and showing few signs of slowing down. Originally the government said gross domestic product had expanded at a 3.3% rate in the final three months of 2023. The figure is adjusted for inflation.

41 companies are reporting this week. Of the 474 companies that have reported so far (95% of the S&P 500): Overall, 77% are beating estimates, and those that “beat” are beating by a median of 7%. Of the 23% missing, those are missing by a median of -6%.

The Conference Board’s Consumer Confidence Index fell 4.2 points in February to 106.7, below the consensus of 115.1. This was the first decline in four months, and came on the back of a downward revision to the previous month, indicating that the increase in confidence around the turn of the year was less than previously thought. Nevertheless, the level of confidence is still higher than a year ago and remains consistent with continued economic expansion.

In February, confidence declined across most demographic and income categories. Both the present situation and consumer expectations weakened. Current business and labor market conditions softened, but remained in net positive territory. Expected business conditions and job availability, however, worsened and both were in net negative territory. Even so, consumer income expectations improved.

Likely related to the more positive outlook for income growth, consumer purchasing plans for autos and appliances in the next six months improved, and they did so by more than typical for this time of year. Home buying plans, however, continued to weaken, edging down to their lowest level since July 2022

Inflation expectations for the next 12 months edged down, but continued to run higher than pre-pandemic.

Who is Howard Capital Management, Inc?

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 stoploss 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.

Enjoy the weekly "Wealth Watch" below from Vance Howard and Howard Capital Management.

“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

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?

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.