Hurray ! Earning Season of the last quarter of 2022 is here. What’s in store this quarter?
Most of us experienced that our dollar investments have dropped significantly compared to the start of the year. Except some savvyy investors, no one is above the water. I am starting this newspost to share my experience with whoever finds it useful. So, be aware, this post is from a blogger and not a financial analyst !
What is an Earnings Season?
Earning season is a pre-defined period where no. of publicly listed companies release their financial statements and make them available publicly. In 4-8 weeks of earning release, majority of the companies would have reported their earnings. Hence, this period is referred as earnings season.
How often are earnings released?
Financial year is divided in 4 quarters. Each company chooses its own start of the financial year. Eg. a company can have the first quarter start in the month of January or in February or for that matter any month of the year. However, all of them need to release earning every quarter. So, no matter when you start, company will report earning on an average every 3 months.
How markets will perform this quarter?
FED is the king of this quarter. Along with global instability and FED increasing key interest rates, there is always going to be a downward pressure. And towards the end of November, December will see rebalancing activities that will further see pressure on the markets.
What should I do this quarter?
Most of the market gurus seem to suggest that investors should avoid aggressive and speculative investing. Its not a great time for beginner investors who make risk losing their initial investments. But, for seasoned investors, this may be time to closely follow the market for bottom fishing.