Today, we have more bank stocks reporting earnings. Also the Housing Index and FED Barkin speaking at 12:00 EST. It could be an interesting day/week as we continue to define the state of the economy.
Bank of America already announced with positive results. Goldman Sachs and many more today. The big banks are not the issue. The focus should be on the smaller banks. If you look at the earnings calendar from Yahoo, almost every other release is a bank stock. Keep and eye on United and Johnson & Johnson also. The eye will be on the consumer and small businesses to see how they are holding up. There is stress in the system and although we haven’t technically been in a recession yet. It certainty feels like it. It might not officially be a recession yet but earnings are showing recession.
The next few weeks will be pivotal in the market direction. If you have been in the markets, there is a saying to sell in May and come back in the fall. Summers can be very lackluster. As always, we focus on the long-term. This is emerging as a great buying opportunity but you must be focused on the long term. Look 3-5 years out and keep doing your research. Stay calm and know this market will eventually strengthen. Stay in the game if you can.
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