Horizon Investments®’s Post

Earnings play an important role in guiding investors, particularly during difficult markets. With markets nervous about stubborn inflation, a gradually slowing labor market, and the timing of the first Fed rate cut, investors are more focused on this corporate earnings season than usual. This is because while the economy has avoided a “hard landing” corporate earnings only began to rebound in the second half of 2023. Since the stock market tends to follow the trajectory of earnings in the long run, many investors are hoping for signs that corporate profits will grow sustainably in the coming quarters. What do investors need to know today about how earnings might impact the stock market and economy? Here's more perspective: https://lnkd.in/dxMxXVeR

In the first half of 2024 equities have, once again, outperformed expectations. with strong fundamentals driving performance across a broad range of companies. But how do we find the next winners? #investing #equities #alpha #infrastructure #innovation

Small-caps provide the opportunity for alpha, along with some diversification benefits. Adding small- and mid-cap companies to a portfolio can boost returns and improve diversification over the long term.

Is the S&P 500 as diversified as it seems? The latest Financial Focus blog, written by Portfolio Manager Cesar Ortega, explores the index's concentration and what it means for investors. https://lnkd.in/eBynvhzm #Investing #SP500 #PortfolioManagement #WolfGroupCapitalAdvisors

There is overwhelming information for investors when deciding to buy a stock. Here are five essential factors for investors to consider when deciding to buy stocks: Earnings: Long-term earnings trends, consistency, margins, and quality of earnings are crucial indicators. Interest rates: Impact on stock attractiveness compared to bonds, debt interest expenses, and valuation based on future cash flows. Management: Experience, motivation, performance history, communication during tough times, compensation structure, and financial management. Competition: Assessing competition's growth rates, margins, R&D spending, and competitive advantages (moat). Financial risk: Evaluating a company's financial health, debt levels, ability to weather recessions, and invest in future growth. By focusing on these key factors, investors can make more informed decisions amidst market volatility and information overload.

Our Latest Perspectives!   Check out our most recent Equity Update for the 2nd Quarter of 2024. In this brief memo we discuss what’s happening in markets around the world, our thoughts about it, and our plan of action – or inaction!   You can find these posted shortly after quarter-end client circulation on our website. To read it, click below! #EquityUpdate #2ndQuarter #Investing #WealthManagement #FamilyOffce

How do stock prices behave when a company is losing money? When a company is consistently losing money, it can have various effects on its stock prices, depending on several factors: 1. Investor Confidence: Continuous losses can erode investor confidence in the company's ability to generate profits in the future. As a result, investors may sell their shares, leading to a decline in the stock price. 2. Market Sentiment: Market sentiment plays a crucial role in stock price movements. If investors perceive the losses as temporary or believe in the company's long-term prospects despite the short-term setbacks, the stock price may not be heavily impacted. However, if sentiment turns negative, the stock price may experience significant declines. 3. Financial Health: Investors assess a company's financial health when making investment decisions. Continuous losses may raise concerns about the company's solvency, liquidity, and ability to meet its financial obligations. This can lead to a decrease in the stock price as investors adjust their risk assessments. 4. Future Prospects: Investors often look beyond current financial performance and evaluate a company's future growth potential. If the company demonstrates a clear strategy to turn around its financial performance or investors believe in its future profitability, the stock price may not be heavily affected by short-term losses. 5. Market Conditions: Overall market conditions and economic factors can influence stock prices. During periods of economic downturn or market volatility, companies experiencing losses may face additional pressure on their stock prices due to broader market sentiment. 6. Industry Dynamics: The performance of other companies in the same industry or sector can also impact stock prices. If losses are widespread across the industry, investors may perceive them as systemic issues rather than company-specific problems, leading to broader declines in stock prices within the sector. In summary, when a company is losing money, its stock prices can be influenced by factors such as investor confidence, market sentiment, financial health, future prospects, market conditions, and industry dynamics. It's essential for investors to conduct thorough research and analysis to understand the underlying reasons for the losses and assess the company's long-term viability before making investment decisions.

From Smart Wealth Advisory: "In the realm of investing, the importance of monitoring quarterly earnings reports cannot be overstated. As the earnings season approaches, investors are advised to be particularly vigilant about companies that may not meet market expectations, poten..." https://lnkd.in/ebmCErDy

As we enter June, earnings season is ending here in the US. We had another blockbuster earnings report from one of the tech darlings and earnings strength could continue in the large-cap space with most sectors showing positive earnings growth for yet another reporting period. This has contributed to the performance of large-cap equities year-to-date, but small caps have not seen the same benefits – perhaps because of their growing debt burdens. Many advisors we work with believe small-caps may benefit from a perceived risk premium. We believe this return anomaly has faded, especially accounting for the risk of small caps relative to large caps. My colleague Michael Gates, CFA, and lead portfolio manager of the Target Allocation model portfolio franchise, quickly examines this phenomenon and its dwindling persistence in one of his latest blogs. Read the full insight to learn more > https://1blk.co/4aQmTgC #investing #marketinsights #smallcaps #portfoliomanagement For Professional Investors Only

In the world of investing, the eternal debate between growth and value continues to captivate the minds of investors. As we navigate through 2024, the question looms large: Will growth once again reign supreme over value, especially in the backdrop of the widely anticipated decline in interest rates? Click below to learn more. https://lnkd.in/gpTzB9Ze