While not big fans of the short term 90 day treadmill called earnings season, we acknowledge the check up, and this season carries very special importance.
Approximately every 90 days publicly traded companies report their earnings to the public. It is a wonderful time for portfolio managers and analysts to review the report card of many different sectors of the economy. Given the latest year’s events and the economic downturn we find ourselves more excited about this season than recent past.
Over the next two weeks hundreds of publicly traded companies will report their earnings from every economic sector of our country.
What are we looking for?
Bearing in mind that companies are run by individuals, and just as some drive to work today at 55 mph and others at 70, we will be checking managements aggressiveness along with most importantly, their outlook.
There will be disappointments along with victories, our goal is to ferret out the truths in each. Larger companies, (the 10-20 largest companies in our country) carry greater importance during earning season as much of the time these companies have their hands in a diverse portoflio of industries within each sector of the country.
Being careful not to put to much emphasis on the short term, we are looking for longer term positives that will further reinforce our beleif that the economy is slowly getting better.
Market movements tend to be more volatile, with early reporters setting the tone for the season. Many neighbors/competitors of publicly traded companies will greatly effect the outlook of others. Buckle up and get ready as it times it might be bumpy.
Patience, as always is our friend. JK