Every few months, you may hear the phrase “earnings season” as you listen to financial news.
But what exactly is “earnings season,” and why is it important to Wall Street?
It is the time when a majority of publicly traded companies release their quarterly financial reports. Companies often go into great detail about their business, and some may guide what lies ahead.
Typically, earnings season starts several weeks after the calendar quarter comes to a close. For example, the fourth quarter’s season began in mid-January, and the majority of companies expect to release their earnings over the next six weeks.1
In recent weeks, some market watchers have expressed concerns about stock-price valuations. Stocks are currently trading at about 23 times 2021 earnings, above the historical range of 15 to 17 times forward earnings.2
Expectations for a robust economic rebound may explain today’s valuations; a rise in corporate earnings may accompany these. As this season gathers momentum, we’ll be able to see if the optimism is warranted.3
Over the next few weeks, you can expect to hear some upbeat comments about the fourth quarter. But brace for some negative reports. If you hear some confusing commentary, please give us a call. We’d welcome the chance to talk about what news pundits are saying about the overall economic outlook.
For more insights and resources, be sure to sign up for our Weekly Market Commentary. Follow our YouTube channel where we regularly post our Epic Market Minute videos. Follow us on LinkedIn, or like us on Facebook. And as always, please don’t hesitate to reach out to a dedicated service professional at Epic Capital.
As a parent or grandparent, you know firsthand the challenges of funding a child’s education. The Free Application for Federal Student Aid (FAFSA) Act was passed at the end of 2020 and has changed some of the qualifications for students to receive financial aid.
The real rate of return is an important personal finance concept to understand. And it goes hand-in-hand with the rate of inflation. It’s the rate of return on your investments after inflation. The real rate of return indicates whether you are gaining or losing purchasing power with your money.
Recently, you may have seen headlines regarding the Securing a Strong Retirement Act, also referred to as the second version of the SECURE Act, or SECURE Act 2.0.
If there is a “silver lining” to all the inflation talk, it may be that Social Security benefits are expected to see a larger-than-normal increase in 2022. Preliminary COLA Social Security estimates call for a 4.7% cost-of-living increase (COLA) in Social Security benefits next year, which would be the highest since 2009. Benefits rose 1.3% … Continue reading “A COLA With Your Social Security?”
With COVID, there were some who believed that progress on this health issue was a necessary precondition to economic recovery. In recent weeks, we have seen some promising trends emerge on the health front. The CDC is reporting the provision of 295 million vaccinations; 51% of Americans have had at least one injection.1
Epic Capital provides the following comprehensive financial planning and investment management services: Learn More >