What's On Tap...

Earnings, Earnings, and more Earnings.  After months of volatility fueled by a slowdown in China, world growth issues, and uncertain Fed policy, we are now beginning to understand how these issues have truly affected corporate earnings.  At the end of the day, earnings are what truly drive stock prices and not the daily fodder.   Expect volatility to continue through October as Wall Street combs through a rash of earnings reports yet to be disclosed en masse.  Stock picking is likely to become more valuable as the challenging economic conditions are likely to separate the strong management teams from the chaff.

Earnings expectations have been materially reduced over the last few months and perhaps the pessimism has set the bar low enough where earnings could be a relief to the market.  Investors that may have sold based on the negative earnings rumors in August and September, may return to buy if earnings prove positive.  Earnings still may likely be lackluster, impacted by slow global growth conditions which have been clearly led by the energy/commodity sectors.  We anticipate this and understand that much of this negativity is reflected in stock prices.  Earnings and outlooks from corporate America may not be as bad as the daily pessimistic views expect as early positive reports from firms such as Nike paint a more solid picture.

The direction of the market for the remainder of the year may very well be determined in the next few weeks.  Not only are the actual earnings numbers important to the future direction of the equity markets but also the tone exported from corporate America will also be critical.  If all this isn’t enough, brace yourself for yet another Fed meeting to discuss the direction of interest rates.

 
Important Blog Disclosures:
The views and opinions contained herein are solely those of the author and have not necessarily been endorsed or contributed to by Braver Capital.  We do not claim to be nor seek to appear to be experts on any specific topics, investment products, or financial services described herein.  Nothing herein is to be construed to be an offer to sell any investment product or service.  Investments involve risk and have the potential for both profit and loss.  Braver Capital does not seek to endorse any investment products or financial services described herein.  Any information about a product or service should be confirmed with its sponsor.  Any remote links herein are provided only for your convenience and Braver Capital has no interest in, responsibility for, or control of the information on the linked website.  We make no promises or warranties, expressed nor implied, including the accuracy of and fitness for a particular purpose of the content on any linked website.  In no way will Braver Capital be liable for any damages resulting from use of these links under any circumstances.