Weighing the Week Ahead: Earnings Season Opportunity?

The economic calendar is a modest one featuring home sales and Michigan sentiment. With the Q3 earnings reporting season in full swing, that news rates to be more important than the economic reports. Despite the likely drumbeat of political news, investors should be asking:

Does earnings season represent a special opportunity?

Last Week Recap

In my last installment of WTWA, I focused on the US/China trade announcement. I identified it as a defining moment for financial markets, but one that would not be immediately recognized. I was correct about the second part! The skeptics were out in force on Monday, and additional stories dribbled out during the week. Only David Templeton (HORAN) considered the improved backdrop from the trade deal. My friend Paul Schatz led the skeptics.

Since I expect the process of recognition to take time, this is exactly what I predicted last week. Today’s installment continues our effort to take advantage of our strong contrarian position.

The Story in One Chart

I always start my personal review of the week by looking at a great chart. This week I am featuring the Investing.com version.

The market gained 0.5% for the week with a narrow trading range of 1.5%. The DJIA looks more dramatic, but more than 80% of the decline represented specific events at Boeing and Johnson and Johnson. The low was on Monday coinciding with the expected round of skepticism on the US/China trade announcement. You can monitor volatility, implied volatility, and historical comparisons in my weekly Indicator Snapshot in the Quant Corner.


The Visual Capitalist analyzes the top 10 cities in 2035 based upon population, GDP, and GDP increase. This is a great way to get a sense of key trends and not so far in the future.