JMC Investments Blog

Most indices with larger cap companies have set or continue to set new record highs in 2024, including the Dow Jones Industrials, the Nasdaq 100, and the S&P 500.  With the Federal Reserve trending to cutting rates downward in line with inflation trending down, this should present a favorable backdrop for smaller and mid cap companies to borrow money from banks at lower interest rates.  A lesser regulatory environment and potential tax cuts under the President Trump Administration (with Republicans controlling both the House and Senate) should be supportive of stronger economic growth in the U.S.   The following chart shows the S&P 500 (primarily comprised of larger cap companies) essentially at an all-time record high.  The Dow Jones Industrials is also at record highs (not shown).   The Nasdaq 100 (chart below), also at all-time record highs, is an index comprised of 100 of the largest non-financial companies listed on the Nasdaq stock excha...

  The following peak price projections (image below) from myself came from March 12, 2024 .   Since then, both AVGO and NVDA had 10:1 splits, so we will use the split adjusted prices for these. AVGO had a much more impressive surge than even I thought was possible after it's Q2 earnings report with the stock price reaching a high of $1,851/share in June.  Given it was at $1,307/sh on March 12th, that is a 42% increase.  I projected AVGO to reach at least $1,475/sh so I consider this a score although I was underdone in my expectations from this outperforming great company. At the market close today (November 7, 2024), AVGO closed at $183.81/share.  Pre-split (10:1), it would have been $1,830/share.  Either way, AVGO continues to be my favorite company in the S&P 500 and one of the best run businesses on the planet, hands-down.  At $183.81/share, AVGO is likely overvalued so one would be paying a premium if they started buying shares ri...