With earnings season taking center stage, are we past the worst of the fix?

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You knew the bottom line for this fix would not be easy. As soon as the coast looked clean on Wednesday, the market tumbled a nasty -2.44% on Thursday. Today was a nicer session with lots of green arrows popping up. The key is not to look day to day … but week to week or even month to month to measure progress. Let us now turn our attention to recent events to see what drives stock prices at this time and what they mean for the coming weeks. Read more below….

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(Please enjoy this updated version of my weekly commentary published in the POWR Value Newsletter on February 4, 2022).

In that week-to-week view, the S&P 500 (SPY) is + 1.56% above last Friday’s score, which is a welcome seat. Fortunately, POWR Value Portfolio is + 3.58% at that time.

The earnings season is currently the centerpiece. There were some big misses like Meta / Facebook and Goldman Sachs.

But like even more impressive beats like Microsoft, Apple and Amazon (and some of our own in the POWR Value portfolio like Columbia Sportswear today).

The key is that the overall quality of earnings season, with mostly increased guidance for the future, rebuilds investor confidence that they should return to ride the bull.

This is because with all the negative aspects that have been highlighted recently, such as inflation, Fed action, Omicron, etc. still does not like the economy of course. And if that’s true … then there’s no need to keep pushing the sell button.

Furthermore, ISM Services achieved a robust 59.9 this week with new orders even better at 61.7. Again, anything above 55 on these ISM reports is a sign of great economic improvement.

ISM Manufacturing earlier this week was almost as strong as the Services lecture.

This economic improvement party continued this morning with a MUCH better than expected government service report.

It was only supposed to show 30,000 jobs added, given the typical January release of extra workers hired temporarily for the holiday shopping season. And yet it added 467,000 jobs.

Reity, are you saying the market will just be on a big bull from here?

No. I say the long term picture is bullish. And we will make new highlights this year.

What is unclear is the journey to get there, because every day is a mystery. And the pattern of positive vs. negative days are almost impossible to judge in advance.

However, if your eyes are firmly fixed on the positive long-term horizon, and your portfolio is loaded with healthy companies trading at attractive prices, then WHEN the bull run unfolds, you will be in a position to take advantage.

And yes, that’s exactly the plan we have in place that works out very well.

What to do next?

If you want to see more top value stocks, check out our free special report:

7 VERY undervalued stocks

What makes these stocks great additions to any portfolio?

Firstly because they are all undervalued companies with exciting upward potential.

But even more important is that they are all A-rated Strong Buy according to our prestigious POWR rating system. Yes, that same system where top-rated stocks achieved an average annual return of + 31.10%.

Click now below to see these 7 star value stocks with the right stuff to perform better in the coming months.

7 VERY undervalued stocks

All the best!

Steve Reitmeister
HUB StockNews.com & Editor of POWR Value Trading Service

SPY shares closed at $ 448.70 on Friday, up $ 2.10 (+ 0.47%). Year-to-date, SPY fell -5.53%, compared to a% increase in the benchmark S&P 500 index during the same period.

About the Author: Steve Reitmeister

Steve is better known to the StockNews audience as “Reity”. He is not only the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock choices.


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