3Q company earning reports will crash the market.

Facts are a funny thing…….Not too many people like to discuss them.
Facts:

1. From all the companies that have reported 3 quarter results, profit were down 18%
2. I have yet to see what the 3 quarter sales results, most likely down more then 18%
Why are these numbers the highliners ?
3. Unemployment at 10% and still rising.
4. Business and personel credit has decreased every month in 09.
5. Most banks are in poor financial shape.
6. Construction and the housing market are in a depression.

There are 3 key areas that need to fixed or improve before the US economy improves.
1.Credit from the banks needs to flow. 2. Housing prices need rebound and new construction needs to rebound. 3. Small business needs to lead the way.
I see none of this happening in the next 12 months.

At some point the stock market will see the lack of sales, lower true profits, lower future profits and the increase in PE ratio.

- CaliforniaDreamingjb

Related Posts:

• Important News - Oct. 15
• Let’s try to put things in perspective here, using the NASDAQ as an example:
• The Consumer Price Index has increased 2.35 % since January 2009.
• I got a feeling we’re on our way down! On CNN, Biden said we hit bottom.
• Trying to bail out housing is a nightmare.

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