90 Day Treadmill aka Earnings Season Report Card

Posted on May 14, 2012 by | Comments Off

With the end of earnings season nearing, we wanted to look back and see what this quarter’s report card looked like. For those new readers, we call earnings season the 90 day treadmill as the demands of Wall Street are stringent and occur every 90 days. Each quarter is followed quickly by another in treadmill like form. Every public company who participates in this treadmill, willingly accepted the challenge when they went public.

Looking back to our April 13th, post here are the expectations and what actually happened from Thomson Reuters:

Top 3 Expected Versus Actual Growth Sectors:

  • Industrials  10.8% Actual + 6.9%
  • Financials  8% Actual + 4.7%
  • Technology  7.8% Actual + 9.6%

Bottom 3 Expectations:

  • Telcom  -14.4% Actual + 13.1% (The worst expected, was the best actual; remember estimates are just that)
  • Materials -12.9% Actual + 7.3%
  • Utilities  -9.3% Actual – 2.1%

With most earnings reported, the growth of 7.6% was much greater than the 2% expected as we entered treadmill season. Accordingly, the S&P current is trading at just over 14, near the long-term average of 15, however above a slower growing economic multiple.

Have a Great start to your week!

JK

214-706-4300

www.jkfinancialinc.com

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Posted in Earnings Season, Investing/Financial Planning

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Summer Doldrums, We Don’t Think So !

Posted on May 11, 2012 by | Comments Off

Even though my 7 and 4 year old swear summer is upon us (counting down the days), which often makes for a dull time in the capital markets, we think this will be an interesting summer.

US tax issues, debt ceilings, “Pain in Spain” (insert numerous other little brother country name) and an election for the US should keep the cobwebs from forming this summer.

We were a little light on comments this week (this being the 3rd), but promise to make it up to you next week. A 90 day treadmill update, along with a few summer saving ideas lead our list of “to do’s for the coming week.

Once again we thank those who made Robert McTeer’s article of questions this week, well done, we are still very impressed!

Until next week, we thank you all for reading our work and wish you a wonderful weekend!

JK

PS : If you have a friend that needs financial related help, send them our way, we are glad to assist in any way and thank those who have already done so!

214-706-4300

www.jkfinancialinc.com

 

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Posted in Investing/Financial Planning

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Congratulations to those who sent Robert McTeer Questions, You Made An Impression

Posted on May 7, 2012 by | Comments Off

Congratulations to all of you who sent questions for the recent Robert McTeer Private Client event.

YOUR QUESTIONS WERE OBVIOUSLY IMPRESSIVE AS IT MADE HIS COMMENTS THIS WEEKEND.

Here is Mr. McTeer’s Sunday Post “Some Questions and Answers” which includes your Questions. Go ahead, take a look, and see for yourself.

Wow guys, you made a great impression. Those of you who sent questions, pat your self on the back!  Well done, and thanks from the rest of us for the great job and super impression you made.

April 28th, 2012

2 PM

Private Client Event

While this takes a little steam out of our coming Newsletter, we are happy to give you all a shout out of congratulations.

Have a Great Monday and a super start to another great week !

JK

214-706-4300

 www.jkfinancialinc.com

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Posted in In The News, Investing/Financial Planning, World Political

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A Political Weekend Across the Pond

Posted on May 4, 2012 by | Comments Off

The fact that so many US investors, including ourselves, will be watching the various elections overseas is as interesting as the elections themselves, and points to how small the world has become.

This weekend France, Germany, Italy, and Greek citizens enter the polls to set their political wishes in motion. I find it interesting these countries have a weekend vote, which may help the turn out, not a bad idea, but I digress.

France’s current chief Sarkozy, is facing a formidable foe and according to Robert McTeer will most likely not make it as a return leader. If this happens, austerity measures changes may be at hand.

An Italian vote is hopeful to reinforce confidence for Mario Monti, who took over in November from the scandal ridden Berlusconi chair. This vote, if correctly forecasted should be a stabilizer.

A less important regional election in Germany, however if polling is correct the opponent to the current incumbent  Merkel party will win, causing slight concerns as change may mean an adjustment in philosophy. This vote, if correct is more a hairline crack in the ice, but worth keeping an eye on.

A Greek parliament vote could expedite this little brother’s country’s exit from the Euro. (On a side note, yesterday in an all day seminar a very well-known international debt portfolio manager called the break up of the Euro within 3 years.)

As you know we are not politically inclined, but as the many moving parts begin to churn this weekend, we will be interested in the reactions from market participants. While something similar to the Oscar’s may be more entertaining, market participants, including ourselves will be focused on the above voting!

Have a Great Weekend!

JK

214-706-4300

www.jkfinancialinc.com

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Posted in Investing/Financial Planning, World Political

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Money Magazine Mentions John Kvale in Investments Article For Age 55-Plus Allocations

Posted on May 2, 2012 by | Comments Off

In this April’s 2012 Money Magazine, reporter Carolyn Bigda has a three-part article that discusses different possible portfolio allocations given various age groups. Carolyn and I had several long conversations concerning the stages of portfolio allocations given age and possible income needs.

In “Hollywood film hitting the floor style”, my mention is brief and not directly to many of the main points that we had made together.

Carolyn was a very sharp reporter and had great points, as such I thought it worth mentioning her article and letting you know it was available.

Here is the allocation we worked on together for the article for your quick viewing.

Have a Great Day!

JK

214-706-4300   www.jkfinancialinc.com

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Posted in In The News, Investing/Financial Planning, John Kvale, Personal

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Five High Points from the Robert McTeer Private Client Event, a Party Crasher with a good Question

Posted on May 1, 2012 by | Comments Off

This most recent weekend the Robert McTeer private client event occurred. We will speak in much greater detail in our coming mid-year Newsletter but we wanted to hit a few of the high points while Mr. McTeer’s words were still fresh and the current economic situation most unchanged.

We also wanted to have a special thanks to clients, friends, and the party crasher, who actually asked a good question, but remains unidentified.  Thank you all and you too party crasher!

Donald and I compared our three high point notes, and with only one overlap, will bring you the top five with the first point being our collective overlap:

  1. The Fed’s credibility is key to holding current rates low. The natural inference would be that if the Fed lost credibility rates may move. I asked Mr. McTeer a direct question and will expand his thoughts in our Newsletter (DC & JK)
  2. Inflation in not inevitable (DC)
  3. The Tax Cliff of possible increased taxes and lowered government spending is estimated, by Mr. McTeer at a 7% GDP hit. Yes you read that correct, SEVEN PERCENT! (JK)
  4. Banks parking excess reserves at the Fed may prove a target for money supply fans. i.e. Get the money moving out of the Fed to get the economy moving (DC)
  5. “Those betting against Bernanke’s intelligence will lose!” A direct, unsolicited complimentary quote from McTeer (JK)

Great questions, great time, and great fun. We thank you all as we filled less than 90 minutes of a saturday into hard-core economic discussions.

Thanks Again to everyone !

JK

214-706-4300

www.jkfinancialinc.com

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Posted in Economy, Education, Investing/Financial Planning, Market Comments, World Political

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