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Earnings Season: Will the Davids beat the Goliaths?
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Q1 earnings season has begun and it's the small cap firms with a spring in their step. Serge Berger will be keeping a close eye on smaller companies expected to benefit from the strong US dollar, while large multinational corporations may take a hit.
A positive impact from the strong dollar on earnings from small cap companies could see the Russell 2000 index outperforming the S&P 500.
With several big financial institutions among the first to report earnings, Serge Berger will watching to see if their numbers have what it takes to take the broader market higher. Among the US banks reporting their first quarter results this week are JP Morgan Chase, Bank of America and Goldman Sachs.
Known as the Steady Trader, Serge Berger says positive news during earnings season may see the S&P 500 go higher after a slow start to the year.