Larger companies generally carry more weight of importance for investors due to their tremendous diversification of income streams.
Clues in earnings reports for companies can often times be garnered by larger companies who have operations in various segments of the markets. Often times when a large company that has various income streams reports good, or bad earnings, many other companies are affected immediately.
Listening to the management of larger companies in different areas of the markets may give investors an idea of what to expect in other more pointed areas.
Early reporting, large companies will often times set the tone for the next several weeks of earnings season (90 day treadmill.)
At this very early stage, larger companies seem to have an optimistic outlook as well as earnings report (in order of investor importance.)
Bear in mind seasonally this is a weak time of the year and capital markets can change on a dime, but so far so good!
Have a Great Day!
JK
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The Larger the Company the More Important During Earnings Season
Larger companies generally carry more weight of importance for investors due to their tremendous diversification of income streams.
Clues in earnings reports for companies can often times be garnered by larger companies who have operations in various segments of the markets. Often times when a large company that has various income streams reports good, or bad earnings, many other companies are affected immediately.
Listening to the management of larger companies in different areas of the markets may give investors an idea of what to expect in other more pointed areas.
Early reporting, large companies will often times set the tone for the next several weeks of earnings season (90 day treadmill.)
At this very early stage, larger companies seem to have an optimistic outlook as well as earnings report (in order of investor importance.)
Bear in mind seasonally this is a weak time of the year and capital markets can change on a dime, but so far so good!
Have a Great Day!
JK
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Posted in Investing/Financial Planning, Market Comments
Tagged Earnings Season, Large Companies