Synopsis
Not just this quarter, but for the next couple of quarters only one thing will matter to the street: Earnings. The reason: Valuations, and a phase of readjustment of expectation that is currently underway. It is a healthy trend, and something the street goes through after a phase of euphoria. There are also chances that the markets will be more sector and stock selective as the earnings season unfolds. One more thing, though: Keep an eye on the news flow on China and the tariff wars. These can impact the real business in many sectors. And, finally, as you focus on earnings and the real business, ignore the narrative.
These three things should be done and remembered all the time, but there are times when they are even more important. First: Be selective in buying stocks. Second: Be watchful and don’t rush into reacting to every bit of news and noise. Three: Don’t expect the market to move up every day.Why are we bringing up the second point, about reacting to headlines? Because, over the next couple of quarters, the market is likely to go through a phase of
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