By: Gerald Sparrow, President & Founder, Sparrow Capital Management, Inc.
Sometimes, it’s a good idea to get a second opinion.
And this may be one of those times.
Government reports are telling a rather bleak story about the economy. The headlines talk about high inflation, rising interest rates, and a possible recession.
But corporations are telling a more upbeat, optimistic story about business conditions.
Aside from a few high-profile misses, most companies have been checking in with solid second-quarter reports in the past few weeks. Through July 22, FactSet reported that 68% of S&P 500 companies reported positive earnings surprises, and 65% reported a positive revenue surprise.
I’m always encouraged about the economy whenever I see businesses enjoying success. While macroeconomic trends are still a steady headwind, corporate America seems to be sailing straight and true.
Investing involves risk, including the possible loss of principal. Diversification does not ensure a profit nor guarantee against a loss.
This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information is not intended to be individual or personalized investment or tax advice and should not be used for trading purposes. Please consult a financial advisor or tax professional for more information regarding your investment and/or tax situation