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VRA Letter: Why is the Market Melting Up? It’s All About Earnings. Here Come the Rate Cuts. The Bears Have the Economy & Markets Wrong. Tesla Deep Dive. Gold/Miners.

Good Monday morning. With the market at ATH’s (S&P 500, Nasdaq) it’s an important week ahead as we'll get inflation readings from the CPI and PPI.  The consumer price index (Tuesday) and the producer price index (Thu ...

Posted On August 11, 20259 MIN Read
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Good Monday morning. With the market at ATH’s (S&P 500, Nasdaq) it’s an important week ahead as we'll get inflation readings from the CPI and PPI.  The consumer price index (Tuesday) and the producer price index (Thursday) will help shape the direction of interest rates, especially for the Feds September meeting. The inflation data comes ahead of the Fed’s Jackson Hole meeting in Wyoming on Aug. 21-23, which will help to set the tone for the September meeting.

Why is the Market Melting Up? It’s all about earnings. 

As we came into Q2 earnings reports we explained why Wall Street was being far too pessimistic. As you read these excellent Q2 earnings below, featuring earnings growth for the S&P 500 of 11.8%, remember that Wall Street was forecasting growth of just 4.9% (vs our estimates 8-10% growth).

Q2 for S&P 500

- 83% of S&P 500 companies have reported earnings above analyst expectations for Q2 2025.
- On average, earnings beat expectations by 7.1%.
- Te...

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