LOOKING PAST THIS QUARTER

LOOKING PAST THIS QUARTER

As another hall pass quarter is upon us, we once again find ourselves searching for future earnings guidance. But is that even possible with so much unknown still in the air? This is going to be the worst quarter which is estimated to be down about 40% plus from this time last year. If it wasn’t for the tech and COVID resistant stocks being pulled forward from the virus, we believe the markets would look much uglier here. These concentrated sectors have been mainly responsible for the large moves in the markets since March. Shock and awe moments may present opportunities to enter more of these leader-like names as companies report. In our opinion, we feel going into the second half of the year there are pent up savings due to the Federal Reserve’s massive liquidity stimulus and inventory that needs to be filled. With that backdrop, this could continue the hopeful outlook for the companies that have experienced tremendous demand increases due to the radical change in consumer behavior since the onset of COVID 19.

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