If you’re like me, you are probably snacking today on all of that leftover Halloween candy from last night. Just like you, I have a favorite candy bar, and it’s the Kit Kat by The Hershey Company (HSY). As I nosh on a few more pieces of this delectable treat today, we have to take account of the fact that the year-to-date stock market return through the end of October is up more than 23%. That’s an impressive run, and, while I love stocks long-term, there are some reasons to be concerned in the short term.
One of the bigger ones is corporate earnings, and I say this because during the current earnings season, we are seeing a greater number of companies miss expectations or offer a softer outlook than the Wall Street herd was expecting. Now, there is probably some sandbagging going on — sandbagging is when a company sets the earnings bar low enough that it should easily meet — or preferably, beat — that forecast. That’s likely the case for companies like Facebook (FB), Qualcomm (QCOM) and others that are in the prime position when it comes to my Great 8 Investing PowerTrends. Others are feeling the gravity of a slowing economy and competitive forces on their business models, while some are simply suffering from a lack of innovation. In short, those are the kinds of companies that we sidestep with my PowerTrend investing lens.
But why do you need to be investing going forward?
Read about why you should be investing at Eagle Daily Investor.