January 29, 2015
With the markets hitting highs so many clients ask "should we really invest now?"
My answer is the following:
As we close out January many of the S&P 500 companies are delivering their quarterly earnings results. One company has dominated to achieve record performance: Apple.
Key first quarter results are as follows:
1. $18 Billion net income (2014 first quarter = $13.1 Billion)
2. 30% Increase in revenue from $57.6 billion to $74.6 billion
3. 48% Increase in earnings per share to $3.06 from split-adjusted $2.07
To put this into perspective $18 billion in quarterly revenue, which was largely due to the sale of $74.5 million iPhones in December, surpasses the revenue earned by 435 firms in the S&P 500 in the past five years!
While impressive, Apple is just one example of the innovation, energy, and economic power that the US has and will continue to harness.
You absolutely should be an investor today and in the future. Even with real concerns around geo-political issues, energy markets, and international economic struggles investors can and should remain confident at home.
If you are unsure about 2015 and whether you should be investing at all- do not look far. Talk with your advisor to create a plan that you are confident in and comfortable with. Forget the media and "world ending" commentary and take the chance to let your money work hard for you in the best economy in the world.
Caroline Hill, Financial Advisor
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).