Good day everybody,
Earnings are strong. Many companies in the S&P are reporting performances beyond the expectations of analysts. In fact, some of the largest companies are reporting record profits. The stock market should be soaring over this rash of good earnings reports, yet it seems stagnant with the indices rising and falling within a narrow margin.
Recently, we read an article, published by a major financial news source, theorizing that increased earnings were a prelude to a market correction. We’re not too sure about that theory and we continue to believe that strong earnings are contributors to a strong stock market.
The stimulus packages, the $1.9T American Rescue Act passed into law on March 11th, and the American Jobs Plan, valued at $2.3T, currently being negotiated in congress, are likely to pump a lot of money into the American economy. It may be months before the impact of these stimulus packages is felt, but it seems they will likely boost the economy.
Still, you should be aware that the bears are out in full force, you may be seeing headlines or reading articles telling you the sky is falling. We see those kinds of articles all the time, we just believe they are wrong, or at least, premature.
The watchlist of companies we monitor to report to you is growing and we want to report them to you when they look primed for a near term gain. We don’t always get the cooperation of the broader markets as many of you have noticed over the past few weeks.
We have been watching a company for a while and its statistics are quite impressive. We’ve been watching and waiting to see if the company would generate any potential catalysts. Recently we were able to identify several new developments at this company that indicated the potential for a good near term gain.
Stay tuned and stay informed.
The Team
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