Happy Hour: Earnings Season, Google Glasses & Failed Advisers

Share on FacebookTweet about this on TwitterShare on Google+Share on LinkedInEmail this to someonePrint this page

Welcome to Happy Hour and the first week of financial literacy month.  With that I bring you some of the more interesting topics of discussion I came across this week.

First Quarter Earnings Season

The market has had a great first quarter of the year so far.  The S&P 500 is up about 11% for 2012.  That’s a nice annual return for only three months.  It might be ahead of itself as we’ve seen some sell off this week.  But news has been almost nonexistent and I believe too many people are waiting for an unwarranted repeat of last year.

With earnings season kicking off April 10, it’s a good time for a portfolio review.  Listen to the conference calls as the earnings reports are released.  Keep an eye on revised revenue and profit numbers too.  We want to see upward revisions and positive outlooks on the year.  If a majority of the earnings beat analyst expectations we can expect the market to move higher from here.  Don’t be sold by a few good or bad reports early on.  There’s still 9 months left on the year and an election to  mess with the markets.

Google Glasses

It’s like a product of a sci-fi flick, Google announced the testing of Project Glass that allows for hands free mobile.  And phone free mobile too.  You’ll just have to check the video out.  But basically, everything a smart phone does, will be built into a pair of glasses and viewed like a HUD (heads up display).   Pretty cool if you ask me and if reports are true, it could be available by the end of the year.

Failing Financial Advisers

Smart Money had a story out about a recent study of financial advisers.  The study found that advisers sometimes put their own interests above their clients.  I can’t say I’m not surprised having worked in the industry years ago.  It tends to happen too often and I’ve always believed anyone can successfully manage their money on their own.  Now, not every adviser is out to pad their wallet, but it’s still a good idea to educate yourself.  Then, if you choose to use a financial adviser, it’s for a second opinion.

Last Call

  • Staying on the tax subject, there has been a recent push by some states for an obesity tax or fat tax on certain foods.  I’m sure there are some who even agree with it.  But, the total lunacy behind the tax code is laughable.  It makes me glad it’s an election year since our politicians will be promoting themselves instead of passing laws.
  • For all you gold investors out, there may be a relationship between gold and inflation or a lack of one.  I’ve never viewed gold as an investment, but rather a fear trade.  Sometimes you know an investment is overdone, when you see too many commercials about it.
  • With the great first quarter performance of the market, we saw many stocks hit new 52 week highs.  As investors this begs the question what to do with stocks at a 52 week high.  Doctor stock covers it pretty well.  As a long-term investor, 52 week highs are a good thing and should be expected on a yearly basis.
Share on FacebookTweet about this on TwitterShare on Google+Share on LinkedInEmail this to someonePrint this page

If you enjoyed this article, get email updates (it's free).

Comments

  1. says

    Wow, Smart Money had to refer to a study to come to the conclusion that financial advisers are self-interested? Ask any number of PF bloggers, they might have given you the same feedback, only for free. :-)

  2. says

    Thanks for your kind words… and you’re right. If we aren’t expecting and looking for those stocks with 52 week highs, what are we investing in? Let’s hope we see more 52 week highs in the 2nd quarter of 2012.

Leave a Reply