Click here: The Weekly Beacon – October 28 2022
We will be giving some macro economic market updates on a weekly basis. No equity recommendations will be given in this commentary, and we encourage you to contact us if you have questions regarding any observations.
Feel free to send in your pictures of lighthouses to be featured in our weekly commentary.
This weeks issue: 2022 Midterms, Republican Senate, Pennsylvania Senate Races, Tight Election Cycles, Gridlock in Washington, Google Earnings, Microsoft Earnings, FAANG Stocks, Shorting Energy Stocks, Blindly Investing, Research What Stocks to Buy, Election, Politics and the Stock Market, President Xi, Xi Leading China, China Stocks, Enemies Thrown Away by Xi, Hang Seng, DiDi Global Stock, Alibaba Stock, Interest Rates, Bank of Canada Policy, Cutting Rates, Pausing Rate Hikes, Inflation Fighting.
On Tuesday (October 25th) stocks bounced, the Nasdaq was up 2.1%, and many investors were looking to after-hours and anticipating good results from Alphabet and Microsoft announcing their Q3 earnings.
It seems investors were wrong and economists who have been bearish on the economy were right. Alphabet missed bottom- and top-line projections. EPS was $1.06 and was projected to be $1.25, revenue was $69.09 billion vs. the $70.58 billion expected. These weaker-than-expected results should not be a complete surprise to investors. Consumers are spending less, and financial conditions have worsened over the last few months.
Investors did not like the news and dumped shares immediately. We think the slight miss did not warrant this reaction, but we all know markets have not been rational in 2022.
Our favorite finance pundit Jim Cramer made another great call for the Cramer Inverse Index concerning Alphabet. He said Alphabet would deliver great earnings. The Inverse Index strikes again……..