Earnings Season – Was it a Good One?

It was fabulous; over 80% of reporting companies exceeded expectations. American business did more with less and navigated a challenging environment with skill. Profits piled up in many corporate coffers. This may lead to increased payouts to shareholders. So, what’s not to like?

Inflation has picked up. The Federal Reserve believes it is transitory, but it may not be. Costs that have increased are probably not returning to previous levels. The pandemic is far from over. We may have to live with the repercussions for years. Taxes may be going higher for business as well as some individuals. This is especially detrimental to entrepreneurs and investors. So, the future is still uncertain.

The Bull and his partners are optimistic that the worst of the risks will be avoided, but constant vigilance is required. We have contingency plans and strategies. In the meantime, stay steady my friends.

The Lonely Bull