In The Lonely Bull

Given the circumstances, this past earnings season was a good one. Approximately 90% of the companies reporting met or exceeded expectations. Certainly, these have been reduced and many results were lower than last year’s for the same period. Still, industry showed a remarkable ability to reduce expenses and manage through a difficult time. The companies that were expected to benefit from the Covid-19 environment, like online shopping, did. Those that would be hurt were, but many of these still adjusted well.

The recovery from the collapse in March and April is still intact. Retail sales have held up, albeit in different areas and through new channels. Manufacturing has also shown upticks. However, many service businesses, such as hospitality, restaurants, entertainment, and the like are still reeling but showing very modest improvements. In short, we are working out of the hole we found ourselves in. Government aid has been a huge part of this, and more is on the way. In an election year, count on another round of some magnitude.

There is plenty here for investors to be pleased about, stay steady my friends.

El Solo Toro

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