Sector Watch: Tactical Investment Opportunities Around Q1 Earnings Season
By Ron Saba, Senior Managing Director of Investment Management and Chief Investment Officer at Horizon Investments
A key component of successful goals-based investing is to think opportunistically. Tactical investment strategies designed to capture upside returns and minimize downside risk are integral to investors’ ability to grow, protect and spend their wealth in pursuit of their unique goals.
With earnings season in full swing, it’s a natural time to assess the opportunities in the market. Although estimates for first quarter earnings are grim—S&P earnings are expected to be down 9% on a year-over-year basis—we believe investors may be too pessimistic. There are encouraging developments in a number of market sectors that, taken together, could result in revenue and earnings surprises to the upside in the first quarter and beyond.
Here’s a look at some key developments in two important market sectors:
1. Financial Services