A Different Take on Earnings Season

As we head deeper into earnings season, I am once again amused at all the noise and fury that is concentrated on the reports, which are quarterly snapshots of a corporation -- and nothing else. Far from being the Holy Grail that Wall Street's short-term focus has turned it into, a company's quarterly earnings report and 10Q filing is just a tiny slice of a corporate lifespan. The report does contain valuable information about the current business and financial status of a company, but it is just an update. It was never intended to be the stock market equivalent of the Daily Racing Form.

As I surf the Internet and listen to the various stock commentators, it seems that everyone is focusing on, and biting on, these short-term reports. Hundreds of billions of market cap will be created and destroyed by how actual earnings compare to the always highly accurate analysts' estimates. Incredibly, most of this money will be bet on the same stocks that always dominate the news. Investors and traders playing the earnings game are competing against the super-computer armed market makers, themselves and the big Wall street firms to pick up pennies betting on the favorite....499 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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