RE:RE:Earnings results likely moot eventPablo, the things you have listed as "all too much" are not in any way new things. Taken individually,
Inflation has been an issue now since last January. Yes, we are seeing the Fed dealing aggressively with this. It's a little ironic as some severe cracks start showing in the economy, that the market cheers today, with the thought that the Fed will be easing up...and they probably should if only to let the data read catch up.
Covid aftermath? This has been "aftermath" for almost a year now, ever since Omicron showed up last November. Yes, there will be other mutations, and other surges, but if this follows the path of other viruses, it becomes progressively less virulent. In fact, Omicron is a good example of this.
European economy in tatters? Personally, I think that's too strong. It is stressed for sure, much of it due to the war, and some due to some governments making bad moves (Britain and Turkey come to mind) but it is not in tatters.
China not transparent? Like they've ever been transparent?? This is not a new thing by any stretch. I will say though that the China housing market is one to watch. China is riding the mess and trying to mitigate the fallout, and seem to be so far keeping a lid on the problem. But then again, the transparancy issue is always present, so who really knows. Anyway, China transparency issues have been around forever.
I agree with you however that we are still at pre-covid highs. Basically, the market has witnessed the bubble created by the Fed (and greed) trying to initially manage Covid when it started, and now we witness the inverse of that. The bubble grew and the bubble has now burst, and we are now back at "no-bubble anymore" status. All in, I think a lot of the pain has been felt, correcting to pre-bubble levels. Often there is an over-reach, but it's clear that the market is trying to look beyond the current bubble-break to a more normal existance.
As it applies to Bombardier, that's not a bad thing at all. In fact, for all stocks, that's not a bad thing. Personally, I hate bubbles, as it throws out any reasoned assessment of what a company is worth, and clouds reasonable and smart thinking.
Bubble-bursting is not fun. It hasn't been fun. And feeling rattled right now is a totally normal feeling. It's the same feeling I had back when the dot.com bubble burst. You feel like you just don't know what to think, or what to do, or is this the bottom, or the edge of the abyss. The only thing I can rely on is history, and history shows when that feeling is fully palpable across the market, you are certainly close to the bottom.
So we'll see what comes, but I totally get that "it's all too much" feeling. I find myself taking a lot of walks lately, purposely giving myself time to clear my thoughts. Being close to the market, especially this market can drive you crazy.
Anyway, I'm happy the bubble final burst. Now THAT was nuts. A more "normal" market, the whole way round, will be a good thing. In that environment Bombardier will do fine. And even in the height of the downside storm the past couple of months, Bombardier has done more than fine.
PabloLafortune wrote: I agree. Plus the inflation effect, European economy in tatters?, COVID aftermath and the lack of transparency in China. Its just too much all at once. Notwithstanding that Bombardier is a very well managed company with outstanding products and a bright future with huge upside from de-leveraging, the markets - notwithstanding today - are rattled. We have to remember that in 2008/09 everybody was on the same page and China was still growing at stupendous rates. Market is still at pre covid highs ie its essentially level with January 2020. So its possible we ain't seen nothing yet.