Welcome to the end of the week and another edition of Happy Hour! Just sit back, relax, and enjoy your end of the week roundup of all things interesting in the land of money.
Earnings Season
The third quarter earnings season starts next week. The past three months we’ve seen another Fed QE program, a nice rally in the market and a boost in the housing market.
Yet, the economy has been in slow motion all year. With so many unanswered fiscal questions ahead, now is a great time to hear what companies have to say about the future. What’s the outlook for next year? Any concerns?
These earnings reports and changes in forward guidance numbers should hint at what the CEO’s are thinking.
Proposed Debate Changes
The first of three presidential debates was this week. The question becomes, with a month to go before the elections, did we learn anything? Continue Reading…
Earnings season is a conflicting time for long-term investors. The idea of quarterly reports just fuels a short-term view of the market. Something long-term investors can get drawn into without discipline and patience. If you know what you’re looking for, the information gained from a quarterly earnings conference call can help you make money.
Behind every investment is a company (or government in the case of bonds) that has bills to pay. A well run company keeps those expenses in check and paid on time. It even carries an acceptable amount of debt too. But what happens to your investment when that company takes on too much debt? Or it can’t pay its bills anymore? A default risk premium is built into the price of every investment to cover this risk.
The Fed announcement of QE3 was the big news last week. Despite my misgivings and distaste for more easing, it’s here, it’s going to happen, so let’s make some money from it. Or more importantly, not lose any.