Transcript:
Tom Vaughan:
Hello, everybody, welcome to Wednesday and back just in time to see the S&P 500 Jump 1.1%. Today, it was a very broad market move. Actually, lots of different things did very, very well today, it was very impressive makes up a little bit for what happened on Monday and Tuesday. You know, whenever they report the inflation number, and it’s quite high, the market has been dropping. And then earnings season starts, which is starting right now. And the market starts to come back up, mainly because at least for the last many quarters here, we’ve seen the earnings do better than expected. And so the market is kind of pricing in what’s expected. And then when they come out higher the market generally just up to that, you can get different situations with different companies, where somebody you know, will have some decent earnings, but then say something negative about next quarter, and all of a sudden the stock will sell off.
So now we’ve seen lots of different things happen. But ultimately, earnings drive the market. And so the more earnings go up, the more the market generally goes up and everything we talked about with inflation, and this and the Federal Reserve and the possibility of recessions, situation Ukraine, and Russia has to do with how much this might impact earnings. So we’re actually going to get to see now as far as that goes on these reports. And so that’s really fascinating what’s going on right now. And I would expect in this particular earnings season, to see some volatility, just because, you know, some of the companies will do well, some of the companies were more affected by what happened in Russia, for example.
And if we look at even the last real earnings season, really was the second half of the earnings season, when the big companies, the Google’s the Microsoft’s the Apple start reporting, some of these companies are really unbelievably good at getting their earnings out at the right levels, and what have you to and that’s why they’re so big and why they’ve done so well. So, you know, that’s what we’re looking at here, we’re really going into this earnings season, I think these are going to be decent earnings reports. As far as that goes, there’s still a lot of demand, people are still spending a lot of money. And you know, things are still moving along at quite a brisk pace. So we’ll have to wait and see you know how this really does play out. But it’s, it’s a it’s an exciting time of the year for people like me to see what actually has transpired.
And so today, you know, the market responded very positively to, you know, what has happened so far. So that’s good. And we’re starting to hopefully see some motion, we did have about half of our gain that we made in that big run up at the end of March, we’ll come back. That’s a pretty good dip. Sometimes that creates that, you know, bargain shopping mentality. I hope that’s what we saw the beginning of today, we’ll see where people start to buy and nibble at these things. And then eventually that starts to get this next leg up. This if we’re going to and I said this before for going to see another leg up and get us back to above where we were at the end of March and maybe even back to an all time high. It’s most likely going to be because earnings are coming out and they’re they’re good. So let’s see what happens here. Looking forward to seeing what’s going to happen tomorrow. Thank you very much.