Earnings are coming in, reflecting the third quarter of 2020. However, it’s important not to jump to any conclusions about the state of the overall economy based on the results reported from a small handful of companies.
It’s easy to get excited—positively or negatively—about earnings reports. Perhaps you have a financial interest in a particular company. In practical terms, though, your overall financial strategy likely covers a wide variety of investments that can be influenced in different ways by different factors.
Through Friday, October 16, about 10% of companies in the Standard & Poor’s 500 index have announced Q3 earnings. This week, another 96 companies represented in the index were scheduled to report their results. From there, another picture will emerge—fuller, but still incomplete.1
You may have questions or concerns about these results, especially in the wake of what has been a difficult and financially tumultuous year. As always, we welcome the opportunity to discuss your financial strategy with you.
- Factset.com, October 16, 2020
The S&P 500 Composite Index is an unmanaged index that is considered representative of the overall U.S. stock market. Past performance does not guarantee future results. Individuals cannot invest directly in an index. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.