“The economy is still deteriorating, job losses are still huge, I really don’t see where earnings will come from to drive valuations. Just because things are getting worse at a slower pace doesn’t mean they’re getting much better” – James…
The 2003 bounce came when stocks were not cheap – they traded at a multiple to cyclical earnings of about 21, according to Prof Shiller, when at the bottom of previous bear markets this multiple had fallen below 6. So…
The combination of record high fuel prices and continuing difficulties in the housing sector has further accelerated the shift away from large pickups and SUVs to small and medium-sized cars and crossovers. We saw a real change in the industry…
I find Morningstar’s stock and mutual fund analysis useful, which is why I am a premium subscriber, but I am constantly frustrated with their lack of an ability to integrate a macro economic perspective into their analyses. They seem to…
The SEC announced a few minutes ago that they settled their suit against Goldman Sachs (GS) for $550 million. Goldman did not admit or deny the SEC’s allegations though it acknowledged that its marketing materials for the ABACUS synthetic CDO were incomplete…
A close analysis of earnings reports from five companies over the last two weeks suggests to me that economic growth has peaked. The clearest example of a coming slowdown comes from $10 billion home furnishings retailer Restoration Hardware (RH). On…
