Most US companies will report earnings this month, and most analysts think the results will be depressing. That’s bad news for stock prices and might add to the (already considerable) pressure on governments to step up their stimulus programs. Gold and silver, meanwhile, seem to like all this financial turmoil.
8 thoughts on “Podcast: A Potentially Brutal Earnings Season Kicks Off”
Maybe they should just stop reporting bad news. If they don’t report the bad news did the bad news ever happen?
The only thing that’s been bothering me lately is the rise in the prices of gold and silver since January. I guess people were expecting a bad quarter, but now that everyone knows Q1 was a bad quarter gold and silver prices are falling again, the dollar is getting stronger, and stocks are approaching all time highs. That makes no sense to me so things feel “right” again.
The brutal earning season as commenced: go long. It’s all the same again; AA, JPM it could have been worse. i. e. AA; profits down 98% but 375% higher than expected. Buy, Buy, Buy and Buy.
If everyone is devaluing, then the cleanest dirty shirt may always be ok, right? Also, what is to keep the fed from buying stocks like the BOJ does, particularly when we know it will do whatever it takes to keep this Ponzi afloat? I think John Rubino is brilliant, but I do wonder if negative rates, helicopter drops, fed buying indices, and the fact that we are all in the same boat so there is no relative safe haven (nothwithstanding gold) will combine to spin the plates and keep the balls juggled for longer still.
Heh. Why would “earnings” and “performance” have any effect on the casino? er… stock market?
Perception is reality! Perceptions have been reduced via talking heads lowering expectations for earnings. Then the companies BEAT the reduced earnings estimate and their stock goes up! Even if the earnings are bad they are better then the expectation so the perception is they are a good value. The fact that the valuation is ridiculously high already makes no difference. Until perception changes the stock market will not re-adjust..
Bubbleomics in a can. Well said good man. The recovery continues.