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Misery loves “company”?

We are in the middle of earnings season and how companies report their profits (or losses) will not only be watched closely by the analysts to see if it meets their expectations, but from a big picture level, economists will be looking  to see whether the results are primarily company-specific or if there are bigger forces at work.

For example: the Trade War.

This seems to be dominating the headline news and can therefore be a resourceful tool that some companies will use to explain away why maybe they are not doing as well as they could or should. 

While certainly this may be a very valid reason for many companies, this is also an opportunity for some to include in their reports other “problematic” items at the same time.  When global forces are impacting many companies, they may “pile up the kitchen sink” with the various other shortcomings and hope that they all fall under the Trade War excuse.  The last thing a company wants to do is to issue a negative report when there’s a period of calmness as this could certainly make the front page!

For investors, high quality companies that miss their expectations might just be taking advantage of the situation so continue to have a long term focus….eventually the dishes will be done and the sink will be cleaner!

DISCLAIMER: Past performance does not predict future results. This report is based on data obtained from sources we believe to be reliable. Hefren-Tillotson does not, nor any other party, guarantee the accuracy or completeness of this report or make any warranties regarding results obtained from its usage. All opinions and estimates included in this report constitute the firms judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation to buy or sell the securities herein mentioned.

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Hefren-Tillotson Inc. is a leading diversified financial services firm providing investment and retirement plan management and comprehensive, financial planning through MASTERPLAN® for individuals and businesses. The firm’s wealth management services are administered by Certified Financial Planner (CFP) professionals, Chartered Financial Analyst (CFA) Charter holders, attorneys, Chartered Life Underwriters, and CPA/PFS’s. Hefren-Tillotson offers corporate services including 401(k) retirement planning, executive financial counseling, fiduciary reviews and workplace financial planning seminars. Founded in 1948, the firm is headquartered in Pittsburgh and has offices located in Pittsburgh, Butler, Greensburg, North Hills, and South Hills. MEMBER SIPC.