It's time to watch and wait
Come Thursday, we'll see what effect the president's State of the Union address has on the market.
I've learned in the past few years how I can be lulled into a trance because I see market and economic signs that are either positive or negative, so I place my bet on that direction.
Then someone opens his mouth on TV or at a press conference, and I have months of gains wiped out in an instant. Long trades tank or short positions need to be covered because of a short-term, media-generated blip.
I'm not blaming Obama on this; it just happens. Press conferences by Bush, Greenspan, Obama and Bernanke have all caused me to take a hit. I blame no one but other panicky investors.
I do believe that in the long run, the only thing that counts is earnings. My accounting background makes me a fundamentalist at heart. Companies with increasing earnings eventually go up and companies with increasing losses eventually go down.
It's that in-between time that bothers me. The real numbers and the perceived numbers sometimes have a disconnect, and it's during that period of disconnect that people get hurt.
My decision to procrastinate is a decision. I am cutting Factset Research (FDS) from my Wall Street Survivor portfolio. They seem to be having just that disconnect I'm talking about and I don't know why.
Although the numbers and press look good, the stock is taking a hit, so I'm out. I'll think about replacing the funds, but not before I see how the market reacts to the State of the Union address.
Jim Van Meerten is an investor who writes on financial matters here and on Financial Tides. Please leave a comment below or email JimVanMeerten@gmail.com
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The solid report comes a month after the retailer closed all of its Canadian operations.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.