The pros and cons of deploying spare cash this earnings season

A male investor wearing a white shirt and blue suit jacket sits at his desk looking at his laptop with his hands to his chin, waiting in anticipation.

Image source: Getty Images

Earnings season has arrived on the ASX, and for many investors sitting on spare cash, the question is simple: should you put it to work now or wait for the results to roll in?

Deploying your money before companies report can open the door to opportunity, but it also comes with some pitfalls. Here’s a closer look at the pros and cons of investing during earnings season.

The pros

Let’s have a look at a few reasons why it could be a good idea.

Early access to potential gains

When a company surprises the market with better-than-expected results, its share price can jump sharply. Investors who bought in before the announcement can benefit immediately.

For example, in past reporting seasons,…

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