Don’t look now but the end of the first quarter is upon us which also means first quarter earnings reporting season is right around the corner. This could be the next significant market catalyst in determining whether or not equities can make new 52 week highs? As impressive as this 2-year bull run has been, at some point and time market valuations will have to align with what corporate America can earn rather than relying on the extraordinary support of the federal reserve.
In this type of environment it is essential to identify companies with top-line growth as well as avoiding companies that are experiencing operating margin contractions. This will not only be quite the balancing act for the federal reserve as to when to let the markets fend for themselves, but also for investors and how diligent they are when making investment decisions.
Good luck to all.