I do not believe anyone expected the markets to be up almost a whopping 10% for the month of September. With only one week left we will see how this finishes out but what an incredible run nonetheless. So now what you may ask? Well don’t look now but 3rd quarter earnings reporting season is approaching and you may think how in the heck can companies continue to exceed expectations in such a tepid economic environment? Over the past several quarters companies have been able to beat their eps estimates and increase their bottom line by running their operations more efficiently which includes in part a reduction in their workforce. Well this perma-bull has been looking for top-line growth out of corporate America in order to believe that we are turning a corner in this economy. Odds are we are not going to see this yet so how will the markets react once the S&P and the other bellwethers begin reporting their results? Well considering this increbidle bull run we have been on one has got to beleive we are due for a pull back and maybe they will use the upcoming earnings reporting season as an excuse? If so don’t forget there is still a lot of cash on the sidelines that could come in on such pull backs and the mid-term elections could also play a key factor in placing a floor in the markets.

Whatever the case may be, this October and for that matter the rest of the year will not be for the faint of hearts. I expect volatility to increase for how could it not with such signficant events on the horizon. Best of luck to all.

Have a great weekend 🙂

~George