Energy, electric, e-smart; all these can describe the current business environment. Energy is for those companies benefiting from new fracking technology, higher oil prices and great investment values. Electric is for all the new technology companies changing the world and driving new growth opportunities. E-smart is for all the new ways of doing things and all the companies driving productivity improvements and smarter ways of doing things. This is one of the most dynamic business environments ever.
The first quarter earnings reports are coming through much better than feared. There is no earnings recession, companies are growing revenues and building business opportunities; the stock market has responded. There is no economic downturn on the horizon. That does not mean there cannot be pull-backs. In fact, they are likely after the phenomenal first quarter run we have had. However, strong fundamentals should limit the declines and power recovery.
Stay steady, my friends.
El Solo Toro