This week will be the true beginning of earnings season as many companies shall report their second quarter results. The economy certainly doesn't look great as oil has moved below $60 and consumer confidence continues to drop. Only a month or so ago investors were bullish on the economy and the stock market. The green shoots seemed to be sprouting up everywhere but they only seemed like weeds to us. Now retail sales remain ugly, housing is still drifting, unemployment is rising, and the consumer is not happy.
Business seems to have stabilized but unless companies report that order rates are improving and the outlook is bright, investors are likely to sell stocks. We haven't been in the optimist's camp and the tidbits from the Allen & Co. conference leave us to believe that earnings season will not bring summer cheer. Let's hope for the best but cash will remain king.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment