CNBC Guest Blog
- Hirschhorn: Greed...or Fear
- Schork Oil Outlook: Some New Hope For Nat Gas Bulls
- Insights for Growing the Economy: the State of Entrepreneurship
- Tamminen: California Is At It Again
- Dorn: Trading Secrets and Serendipity
- Schork Oil Outlook: Falling Demand and Falling Production—The Race is On
- Busch: Ron Paul Fed Day
- Geithner Tells Banks To Make More Risky Loans?
- Farr: It Can Go Higher
- Jon Henes: Evolution From Trader to Owner - The Making of the Private Equity Hedge Fund
- How Stock Investors Can Play Holiday Travel
- Time Lapse World Series Is A Great Play
- Hirschhorn: Greed...or Fear
- My Top 10 Tech Toys for the Holidays
- iPhone a Better Gaming Platform Than Android?
- May Day For Dendreon
- 100% Mortgage Financing From USDA
- Holiday Tipping: Who And How Much
- Deep Discounts Should Make It a Very Tech-y Holiday
- Credit Markets on Edge About When Fed Will Raise Rates
- Bove: Expect Goldman To Increase Dividend Meaningfully
- Bullish Sign for Gold: Central Banks Are Big Buyers
- Victoria's Secret Hopes to Rekindle Desire for Lingerie
- High Roller Sues Harrah's for Lost Millions
- Wall Street Jobs Slow to Return Despite Record Profits
- Big Shareholders Ask Goldman to Cut Bonuses: Report
- Buying an Expensive House? Government Can Help
- Review: What It's Like to Drive the New Chevy Volt
RSS FEED
Text Size 
Michael Yoshikami
President & Chief Investment Strategist
YCMNET Advisors
So far, earnings this quarter have painted a mixed picture, some good some bad, but they're far from the disaster some had feared.
This illustrates the reality of the current economic condition; some parts of the economy are stabilizing while other areas are still mired in disaster. Understanding that clarity is a fantasy and will go a long way towards helping one understanding this quarter's mixed results. Confusion and conflicting signals will continue to reign.
Intel [INTC
Loading...
()
] signaled that perhaps the slowdown in PC sales is moderating and that inventory channels are clearing. This confirms, at least from one company, the belief that the inventory cycle of excess reserves is beginning to turn the corner towards a restocking bias.
Goldman Sachs [GS
Loading...
()
] showed its dexterity in reacting to current conditions by posting record trading profits. J.P. Morgan [JPM
Loading...
()
], though continuing to struggle with loan portfolio deterioration, posted reasonable results. Other institutions such as Citigroup [C
Loading...
()
] and Bank of America [BAC
Loading...
()
]showed positive one-time results but still struggled under the burden of legacy decisions.
General Electric [GE
Loading...
()
] was weighed down by continuing problems in their financial division but highlighted some glimmers of hope in other business units. And Alcoa [AA
Loading...
()
] lost less than expected because of cost cutting. A mixed bag of results to be sure.
More From CNBC.com
- Corporate Cost-Cutting: Will Early Gains Turn to Pain?
- Kudlow: Bad News Can Be Good For Profits
- Art Cashin: Traders Don't Trust These Earnings
The earnings message here, is that stabilization is well underway but the recovery will be less than consistent and a struggle for many industries.
Now, more than ever, investors should look at individual results and not attempt to generalize while forming conclusions. Don't be dogmatic in your assessments but take a balanced view as you look at the numbers. Don't trust headlines screaming obvious, global assessments; nothing is obvious in this environment.
Instead, look for clues as companies report earnings for what their economic outlook is and prospects for business growth. These are the key signals to digest in a crazy, uncertain economic environment.
___________________
Michael A. Yoshikami, Ph.D., CFP®, is Founder, President, and Chief Investment Strategist of YCMNET Advisors, Inc., a registered investment advisory firm (www.ycmnet.com). Michael oversees all investment and research activities of YCMNET. He is a respected lecturer speaking frequently on market issues, tactical asset allocation, and investment strategy. He appears regularly on CNBC and CNBC Asia and can be reached directly at .
Data is a real-time snapshot *Data is delayed at least 15 minutes