Words matter. As investors brace for the unofficial start of the S&P 500 earnings reporting season for first quarter 2015. (see this week’s Weekly Market Commentary, “Earning Recesion?” April 6,2015, for detail), the financial media is swirling with words and phrases like “rig count,” “strong dollar,” “port strike,” and even “bad weather.” These earnings season buzzwords come and go, and although these words change with the seasons (remember “deleveraging,” “debt ceiling,” “Europe,” “warm weather,” “drought,” “Super Storm Sandy,” “Obamacare,” etc.), it is earnings — and earnings guidance — that ultimately drive equity prices.

Words With Friends