The Light is Real… and it’s not a Train

by The Investment U Research Team

This morning, Wells Fargo & Co. (NYSE: WFC) announced that it expects a $3 billion profit from the first quarter. One of the biggest banks in the country, Wells Fargo is the first big winner from this earnings season.

It’s in stark contrast to Alcoa (NYSE: AA), the world’s biggest aluminum producer, which reported lower earnings than expected.

Wells Fargo’s news has spurred a mini rally this morning, and traders are rushing back into financials. But it shouldn’t surprise anyone, really.

It’s a huge clue that there are large profits being made – the world hasn’t ended.

No doubt, there will be firms that are so severely affected by this downturn that they will have no choice but to close their doors or be bought out. But the fact remains that there are companies that are profiting handsomely.

The market is oversold, based off collective fears of a “worst-case scenario.” It’s simply not the case. And fortunately, that means Wells Fargo won’t be the last company to surprise. It’s stock is happily up 25% as of this writing.

As earnings numbers roll out next week, watch big movers like CSX Corp. (NYSE: CSX), Intel (Nasdaq: INTC) and Johnson & Johnson (NYSE: JNJ) for a better indicator of our economy’s true strength. These three companies are great barometers of technology, consumer goods and goods transportation.

A few more surprises from companies like these, and it’ll tell you the “light at the end of the tunnel” is real, and not just the train barreling towards us.

Companies mentioned in this article: WFC, AA, CSX, INTC and JNJ.

• Pull Back Continues Through Mixed News
• Nucor (NYSE: NUE) & The Golden Dividend Ratio
• Caterpillar (NYSE: CAT) Braces for “Nuclear Winter”

Sign Up now and receive this Free report: Collect 122% in the Next 12 Months From Gold's Surge.

Could you use an extra $600 - or more - each month?

If so, you’ll want to check out the details of an overlooked government-backed program in THIS REPORT.

It shows you why the government is set to distribute $457 million to a small group of recipients, how to get your name on the list and the exact deadline you must meet in order to qualify.

2 Responses to “The Light is Real… and it’s not a Train”

1. Jae Jun Says:
   April 9th, 2009 at 12:54 pm

   I agree with what is being said here but personally hope that the light is not real.

   As much as a bear market is tough to handle, it is a great opportunity for anyone.

   I had to sell out a couple of positions that rose too high too quickly in the rally but would like to see it go down so that I can use up my cash reserve.

   Reply

2. Jae Jun Says:
   April 10th, 2009 at 2:25 am

   I think I am being caught as spam

   Reply

Comments

Check out our selection of daily Investment Research:

We Respect Your Privacy

---

What is Investment U?

Since 1999, Investment U has provided impartial, no-nonsense investment advice on how to build long-lasting wealth.

---

Recent Articles

Platinum Services

The Oxford Club is an exclusive, global network of investors, who collectively participate in the pursuit of prosperity and wealth. The Club is renowned for its market-beating, tried-and-true investment principles.

The White Cap Report exclusively identifies companies, White Caps, which - by being among the earliest to gain traction - have secured dominant positions within untapped, billion-dollar markets.

With an elite trading team at the helm, the Xcelerated Profits Report shows any investor how to "invest like a pro," using high-level, yet easy-to-execute strategies that "xcelerate" profits while minimizing risk.

---