We’re In A Party That Almost Everyone Knows It Won’t Last – Stocks Roar Higher And Never Pulled Back!! Meanwhile, Things Are Getting Worse!!
May 13th, 2013
Remember, a bubble is always the biggest right before it bursts
Thomas H. Kee Jr.: Lack of growth in the Dow reaches dire stage
Given what we all have known about the DJIA in the past, and what we know about its composition today, we can still agree that the companies that comprise the index are solid companies that are likely to withstand major economic catastrophe, but at a certain point, valuation must come into play. In this specific instance, it is a concern.
As they say, one quarter does not a trend make, so I am going to talk about two consecutive quarters of no growth in the Dow. Both the fourth quarter of 2012 and, thus far, with 25 companies reporting for the first quarter of 2013, the Dow has had no growth for two consecutive quarters.
In this most recent reporting season CaterpillarCAT +0.04% and Exxon Mobil XOM -0.13% had the worst revenue growth rates, with declines of 17.3% and 12.3%, respectively, and in the fourth quarter of 2012, Bank of America BAC +0.15% led the way with a 24.9% revenue decline from the prior quarter.