WARNING: Stock Market Is At Risk Of A Complete Reversal Of The Last 3 Years’s Gains Or Worse
October 23rd, 2012
Profit Outlooks 90% Negative, Wages Are Down, Revenue Streams Are Drying Up, Cost Cutting Measures Are Maxed Out, And US Government Debt Threatens National Security
Earnings Cliff Ahead? Profit Outlooks 90% Negative
Earnings conference calls are beginning to resemble crisis hotlines as corporate executives slash profit forecasts because of fears of higher taxes, a recession in Europe and slowing economy in China.
Of the 20 companies in the S&P 500 (^GSPC) that have provided guidance for the fourth quarter during the current earnings reporting season, 18 have slashed their forecasts, according to Goldman Sachs (GS).
That’s a 90 percent negative run rate that many investors and analysts have never seen before.
“Policy has trumped weak fundamentals since 2009,” said Brian Kelly of Shelter Harbor Capital. “If the market cannot rally with multiple central bank meetings this week, then we are at risk of then entire process reversing.”