What a week! The markets continue to be choppy and volatility is the name of the game. With no resolution yet from Europe, poor earnings from banks and very little positive news, it’s been a wild ride in the equity markets so far. This market is certainly not for the faint of heart or for those who get spooked easily. However, for those of us in this challenge, it’s a “no risk, all reward” situation right? So hey Mr Market, bring it on! We are not spooked.
We at MSB continue to be bullish and are definitely taking advantage of this earnings season. Of course, some stocks we picked didn’t generate the gains we were looking for. AAPL for instance missed analysts’ estimates for the 1st time in 7 years and so plummeted 20 points from its all time high. In the case of IBM, a well managed company with a solid business model, its stock moved 4% after earnings release on fears that the company’s growth will slow down even though the company reported revenue growth, margin expansion and increased earnings. This is one example where even though fundamentals are strong, short term reactions dominate.
It’s been a crazy 5 weeks. We have all been waiting for policy issues here in the US and across the Atlantic to be addressed – to no avail! Let’s keep our fingers crossed and see what next week brings. Whatever it is, we shall not be spooked!
Hoya Saxa
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