One Investor to Another The Blog of Ted Allrich Earnings Still Matter... 7:40 AM PDT, July 24, 2010 - This week may be the turning of the tide.....and it was done with earnings.....investors forgot about the lousy housing market, the high unemployment, the huge deficits, the sluggish economy..
...instead they focused on real numbers, the ones that companies put out every quarter....they saw some good reading from companies like Intel, Apple, Microsoft, Ford, Caterpillar and many others.....these giants are still growing, profitably.....they're making big money (records for Intel and Microsoft) in an economy that can best be described as terrible.....some companies are surviving, no more than that, they're thriving....they've cut costs to the minimum, offered new products, and stayed focused.....they're the ones investors will want to buy going forward....yes, there is still plenty to worry about, lots of problems....but after seeing these quarterly earnings, investors are beginning to believe that there are still companies that will give them a good return on their investment no matter what the U.S. or global economy does....because they're run by good management who have adapted to new realities and delivered outstanding performance when all odds are against it......it may be too soon to get excited, but this week's action in the market is very encouraging....the earnings were there and investors saw them, really saw them, and interpreted them as positive.....they may be starting to believe that the future isn't so grim, that we will muddle through these difficult times, and that investing in stocks makes a lot of sense, especially when those stocks are able to show strong profits....maybe, just maybe, the tide is turning...... Click here to see more of Ted's Blog... |
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