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Earnings Season Kicks into High Gear

Earnings Season Kicks into High Gear

January 19, 2022
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The release of corporate earnings reports will increase this week and definitely influence the stock market. The first reports have been a mixed picture, including some big banks missing earnings estimates. It will take a few weeks and the release of many more reports before a negative or positive trend can be discerned. Investors are looking at the earnings from the fourth quarter of 2021 but even more importantly they are looking at future earnings forecasts for the first quarter of 2022 and beyond. Good money managers are always making investment decisions based upon what’s coming next, looking forward to 3 to 9 months from now.

What’s the best course of action? It might be good to buy during this dip. Currently the S&P 500 is down almost 5% from it’s most recent highs and the Nasdaq is down nearly 10% (the Nasdaq fluctuates more). The market has been in an up and down trading range since early November and it’s now at the bottom of the range. If the market declines approximately 1% below these current levels, we will be sending a buying opportunity to clients.

Photograph by : Benjamin Child

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