Happy Wall Street New Year Everyone!!
(Am I the first person to dub this term?) Today is what I would like to hereby declare Wall Street New Year! Why? Even though it isn't January 1st, even though it's just an ordinary Tuesday, even though businesses have already closed their accounts and dissolved them into income summaries? Well because $AA Alcoa, has blessed us with their Q4 earnings report today, kicking off 2013's first Earning Season.
January will be 2013's first Earning Season.
Alcoa is an aluminum manufacturer, largest in the United States, third in the world after Rio Tintan Alcan and Rusal.
Alcoa has a reputation for being the first on the Dow to report it's earnings for several years now—which it hasn't failed to live up to as of 2013.
It is Wall Street Superstition that Alcoa's earnings foreshadows a good indicator, overall, of what the rest of Earning Season and the year will look like for companies and the stock market.
Former hedgefund manger Jim Cramer is one that completely agrees with the superstition. He says:
The issue is Alcoa sells into pretty much every market that matters. In that way Alcoa is my own barometer of worldwide growth, a far more important tell for things.Is the speculation surrounding Alcoa's earnings short-lived, mystical at best? Others such as the dubbed "Ex-Investment Banker turned Journalist" Marek Fuchs most certainly believes so and completely disagrees with Cramer.
However, I believe as an on-looker, that both men are completely with merit. If you like the hype, and want to believe in something higher than yourself, why not? Go ahead and believe the superstition, it hasn't been proven false as of yet. But if you are more stern, and like the gospel-truth facts, then Fuchs is your guy.
I for one, will take them both into account while I celebrate my Wall Street New Year! As I watch the market by a warm-toasty fireside, enthusiastically countdown as the banks near closing time, and throw confetti when more reports come in, this may very well be the greatest Wall Street New Year yet!
- Happy Wall Street New Year to you and yours, with great regards from your fellow Financier: Nathaniel S-T.
|Marek Fuschs Article|
|Jim Cramer Article|