America’s Stock Market Still Has Plenty to Cheer About

Everywhere you turn, people are worried. 

Turn on financial television, scroll through social media, or open a newspaper, and you’ll find the same story:

There’s always a reason to be afraid. 

But fear has never built a bridge, started a business, or created a single job. 

Optimism, the belief that progress is possible, has always been the driving force behind America’s greatest gains.

Right now, while headlines scream uncertainty, I see the foundation for another leg of long-term growth being built. 

The pessimists will miss it, just as they always do.

Let’s take a closer look at what’s really happening.

The first bright spot is the surge in capital spending. 

Companies across America are investing heavily again — not just in artificial intelligence data centers, but in factories, energy infrastructure, and transportation. 

After years of underinvestment, businesses are finally modernizing their operations. The numbers don’t lie. Corporate capital expenditures are running at their strongest pace in decades.

Think about what that means. 

New factories mean new jobs. Modern equipment means higher productivity. And higher productivity is the single most powerful engine of prosperity. It keeps inflation in check, boosts wages, and drives profits higher.

This is not a flash in the pan. Incentives built into the government’s recent budget law are about to unlock another wave of investment next year. 

We’re in the early innings of a capital spending renaissance that could define the rest of the decade.

Second, corporate America’s profits are quietly growing faster than most people realize. 

The latest data show operating income for S&P 500 companies, excluding financials, rose 9% over the past year. Revenues are up about 7%. These are not recession numbers. They are healthy, steady, and sustainable.

Sure, technology giants are pulling much of the weight. But that’s been true for years. 

What’s often overlooked is how many other sectors are showing resilience. Even consumer staples, which faced margin pressure from rising costs, are seeing profits inch higher again.

It’s easy to forget that American business has always adapted to change. When one sector slows, another steps up. When margins tighten, companies innovate. 

That is the beauty of a dynamic, competitive economy.

Third, and perhaps most important, balance sheets are strong. 

Both households and corporations have more cash, less debt, and longer maturities than they did going into past downturns. That gives them room to weather higher interest rates and keep spending.

During the pandemic, families and businesses cut costs, refinanced debt, and built savings. Those decisions are paying off. Despite worries about consumer fatigue, spending remains healthy. 

Companies are investing from a position of strength, not desperation.

The average American household today carries a debt service burden near multi-decade lows in relation to its income. Corporate leverage ratios are stable. Banks are well-capitalized. 

The financial plumbing of the economy is in far better shape than most commentators admit.

Now, combine these three forces…

And you get the recipe for durable growth.

This is exactly why the American Prosperity approach works so well. 

Our strategy is straightforward: we buy exceptional businesses that will perform well over time, regardless of economic conditions, interest rates, or other macroeconomic factors. 

We focus on what truly matters — companies with real earnings, strong leadership, and a proven ability to adapt and grow.

We don’t try to guess the next move of the Federal Reserve or time the market based on short-term fears. That kind of speculation is a fool’s game. 

The smartest investors, from Buffett to Templeton, all built their fortunes the same way: by owning pieces of great businesses and holding them for the long haul.

The results speak for themselves. 

According to Ibbotson Associates and Morningstar’s Stocks, Bonds, Bills, and Inflation (SBBI) yearbooks, every 20-year period since 1926 has rewarded investors who owned a broad basket of U.S. companies and reinvested their dividends with positive returns.

Real Talk: There will always be noise in the headlines. The Fed may adjust rates up or down. Elections will come and go. 

However, the underlying story remains the same: America continues to build, innovate, and create value.

The market knows this. That’s why, even after periods of volatility, the long-term trend remains up. Investors who bet against American resilience have lost money for more than two centuries.

Every cycle brings its skeptics. 

In the late 1970s, inflation and oil shocks led many to believe that America’s best days were behind it. 

By the mid-1980s, those same investors watched as the Dow Jones tripled. 

In the early 2000s, after the dot-com crash, “old economy” stocks were written off — yet those same companies led the next bull market.

History repeats itself because human nature remains unchanged. Fear sells, but optimism builds wealth. 

Warren Buffett said it best: “Never bet against America.”

Today’s investor faces the same choice. You can focus on every gloomy headline — or you can look at the real data: companies investing, profits growing, and households standing on solid ground.

The smart money is betting on the latter.

America’s story has always been one of renewal. We’ve faced wars, recessions, inflation, and political turmoil. Each time, those who kept faith in the country’s productive power came out ahead.

This moment is no different. Beneath the noise, the fundamentals remain strong. The next chapter of American prosperity is already being written — one investment, one job, and one innovation at a time.

For those patient enough to see it, the future looks bright.

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If you have questions, you can send them to me at [email protected].

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Regards,

Charles Mizrahi
Prosperity Insider