BlackRock Q2 Earnings Review

Rock solid fundamentals; chart continues to look bullish to us.

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Definitely A Crash Coming

The Atlanta Fed just published a Q3 GDP growth estimate of +5.8%.  The market then sold off further today.  Caught in a short-term narrative that says, if GDP up then inflation up, and if inflation up then rates up, and if rates up then equities down, some folks are selling equities as a result.  Those same folks are also likely banging the table and saying they wish equities were driven by earnings like they "used to be" (during an indeterminate period of history to which they cannot quite point).  But if the US starts turning in actual GDP prints in the +5-6% range - which is a huge rate of growth for an economy this large - and stocks start going up, these folks will then also decry the disconnect between stocks and reality.  If you come across this kind of investor mentality online or in real life, it is in our view best ignored altogether because it is idiotic.  

Equities are selling off at the moment and many will be becoming fearful once more.  You have folks all over the media talking index corrections, inflation, and so on.  Apparently the billionaire David Einhorn and the multimillionaire Michael Burry are now philanthropists, so keen are they to be on the internet helping the average investor understand that inflation is worse then it seem and that the market is going to crash.  

Right.

Here at Cestrian Towers we believe this current pullback is starting to open up some nice opportunities to further accumulate some of our stock picks in this service at good prices.  BlackRock ($BLK) is among them.  Let's take a look at the latest Q2 earnings print, the valuation, and the stock chart.  Remember this is one of the stocks in our Inner Circle 'Financials' basket.

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