Christmas Earnings Are Here

The long awaited season of announcements from companies is upon us. Companies are now reporting the traffic, revenue, and results from the busiest time of year. Fourth quarter earnings are important to decision makers and investors. If the American people did not spend well it is a poor sign for the overall health of the economy because as consumers, if we don't consume it means we don't have the money to pay. It also shows us investors the companies that might have performed better or worse than expectations because of poor management. Remember though that one earnings doesn't mean the end but it does mean a more careful eye should be applied.

So far the earnings are mixed, some companies have done really well from sales and cutting costs. Others were beat by competitors pricing or differing tastes in the overall economy. Any earnings beat is healthy for you as an investor. They might not have performed exceptionally in sales growth but if management made tough decisions and makes the company stronger and leaner it might not be a sell but a buy. It shows the tenacity and skillfulness of management. If and its a big if they have no turn around plan except cutting jobs or expenses it is time to jump from that investment into something more stable.

From what I have seen and heard I think consumers were out in force buying and buying. The economy has done better, people's stock portfolios were up, and there were good sales going on in stores. i am just one person and we will see the whole picture in a few days. This will set the trend for the coming year. If companies did really well they might take it as a sign to expand and hire. If the season did not turn out as well then companies will have to figure out a way to get customers in and find ways to turn around the economic trend.

The companies that have already announced like Apple and AT&T both beat estimates. That is probably a good sign, two big companies had higher revenues and profits for shareholders. The two companies are also connected in what they sell which means that phones were probably a big gift this year.

The information I have seen shows that the economy did extraordinarily well this lsat year and will probably do great this year too unless another factor comes along and changes the direction. This is why we must be diligent investors and constantly consuming information to make money. Its just the right thing to do when money is on the line and it makes us better investors. Involved investors are the best investors. Make sure you look at your investment's earnings report this quarter. You never know when you need to make change in your portfolio.

Davos: World Economic Forum

A group of wealthy, successful, and global people all together makes for a very important event. One that needs to be followed closely. The meetings and deals made this week at Davos will make waves in the business and political field. A smart and wise investor like yourself will follow all news closely but when groups of major decision makers get together it makes it of the utmost importance to follow even closer. The CEOs and leaders here are discussing their ideas about what is coming in the new year and what they feel about the outlook. This year the business leaders are optimistic but hesitant about certain things that could change the landscape like regulations and political changes. A PricewaterhouseCoopers (one of the big four accounting firms) annual survey finds that 39% of CEOs think earnings for their company will go up this year. As good investors keeping up with changing information, we should really focus on the forum and the ideas discussed.

It is a great place for the major stakeholders to meet new people the can build stronger businesses. I might not have access to all the information provided there because I did not attend, I can know that it is important and something to watch. Any news of possible deals or themes in the forum can have an impact on stocks and investing. Companies whose stock you own attend the Forum and you hear that the CEO met with a major distributor and a major politician in an emerging market you might think that they are making headwinds in gaining new sales and in new areas. This might be a time to buy more stock especially if you have free cash on hand.

Davos is an expensive ticket and means that you are something if you go. It can really change a company's direction when they go. That is why knowledgable investors pay attention to discussions andy themes at Davos and really any major event with thousands of movers of the economy, everyone should pay attention and make decisions about future events. I will probably comment about any important thing I hear that happens in Davos this year. I'm thinking emerging markets, free trade and regulations, and the world's poor will be important this year to movers and shakers at the forum.