This week is a big week on the earnings of US financial companies!
There is no denying the fact that the financial sector did play a very important part last year in pushing up the whole US market.
There were a lot of banks that actually bought back their shares last year. This proves that economy is turning better, and the banks that were affected by the Subprime mortgage has recovered pretty well with loads of cash at hand!
If you read our blog in the past, you would have noticed that I am a big fan of Bank of America, a company that I have tipped as a company that should be in your retirement portfolio when it was trading at $7. Now it is $16. I still think it is as it is heading for the $20 mark!
But big big week now as this week, a lot of financial big giants will release their results starting from tomorrow morning Before US Market Open. This week, Bank of America, JP Morgan, Wells Fargo, Goldman Sachs, Citigroup will all be declaring their earnings!
As Financial sector is one of the 4 pillars of US economy, I believe that the fate of the US market in the first quarter does depend on the results 4th quarter results of these companies.
In general if these companies aren't doing above what the analysts think, a sell off in Feb or Mar looks likely.
So please spend some time keeping track of the results of these stocks!