Here's a quick rundown on the news out on the markets this morning and how stocks are reacting...
- Yahoo, a big investment for my clients, released great earnings last night and the new CEO (who came from Google), showed her strategy for returning the company to a strong growth internet powerhouse was working. The company has started to show profit growth, raised guidance going forward, and said they were continuing to look at strategic ideas to enhance shareholder value and are looking at what to do with the $3.3 billion they received from selling a part of their Chinese stake in Alibaba. The stock is currently up 6% to $16.60/share...I still believe the risk/reward for owning Yahoo is extremely attractive and favorable and while there might be some slight profit taking over the next several days, I'm holding on to my shares as I expect the stock to trade towards $20/share over the coming month. If my opinion of such changes, I would certainly look to take any profits I have.
- The markets are down close to 1.75% so far today as several large multinational coporations (Dupoint, 3M, Caterpillar, General Electric, and McDonalds all had disspointing earnings and lowered their earnings forecasts going forward...therefore sending the markets lower on fears of the continued weakness in the global markets (which mind you we've talked about for quite some time now - no surprise there).
- The sell off does concern me somewhat but I've already taken profits over the past month on some of my investments so I already have a lot of cash sitting on the sidelines as I wait for the markets to come down a bit before I redeploy it into any mutual funds or stocks. The tension in the Middle East, the continued (and annoying) financial calamity in Europe, and the uncertainty with how the Presidential race (which will impact fiscal direction for the country) will end up all emcompass the concerns I currently have. The markets have been "climbing a wall of worry" over the past 6 months but now I am uncertain as to the general direction stocks will take over the coming weeks....once and IF I can gain further traction on their direction, I will surely adjust my investment strategy going forward.
For now that's about all I've got
