Is It Time? ⌚

Is It Time?

The last few months haven’t been too good for stock market bears. Many have screamed that the market has hit its ceiling, yet it has continued to move higher and higher as investors continue to be more confident in the markets. However, the outcomes of this week can truly outline how the next few months will be, and we might be getting an early sneak peek at a market reversal.

This week marks the start of the earnings season, a time where investors are eager to see the reports their companies release to reevaluate their investments. Earnings have been great for the past year; ever since the COVID-19 stock market crash, companies have shown solid recoveries in their revenue and income. The reactions to this? Well, we can surely say that it was very bullish. All 3 indexes are up more than 75 percent from their COVID dips, as investors were uniquely euphoric about the recovery of the economy.

Unfortunately, that euphoria could come back to bite us. With the current valuations of companies, earnings expectations could be a bit too high. As chief strategist at Principal Global Investors Seema Shah said, the only risk is that expectations are so high that they are going to be difficult to meet. If the broader market fails to meet earnings expectations, prices could certainly revert to more fair valuations than today.

The reversal could easily be on its start; the indexes have fallen for 2 straight sessions, sending many portfolios negative. Netflix reported disappointing subscriber growth after hours on Tuesday, but the main highlight was the highly awaited earnings report from United Airlines. United’s stock price has gone up nearly 150% since the stock market crash as investors priced in an airline recovery into their valuation. This didn’t turn out too well, as United reported a $1.36 billion loss, disappointing the whole industry. However, we still have days left in earnings season, and things can always change. Do you think the market will finally reverse? Or do you believe there is still some gas in the tank?

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:

More Posts

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying, holding or investing in digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC.

The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community.The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results.Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such.Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.