DJ, Nice to see that the Dudes haven't jumped out of any one story windows! :o)
Haven't had much to say myself, so just been sitting here underwater blowing bubbles.
The Big Boyz are down to 73 companies now. It is interesting to note that while all this turmoil has been going on, the Big Boyz had their first quarter this year vs. last year increase in eps after six negative quarters in a row. With a median 39 cents in eps, it represented a 34% increase over last year and a 22% sequential growth. Based on the TTM eps, the current PE median is 25.9. Folks seem to be fretting much about the PE ratios, but S&P has the projected growth in eps for the 3rd quarter to be about 80% from last year.
spglobal.com
If we look at the 10 industry groups in the S&P, we got three really sickly ones that seem to get all the attention: Energy, Telecom and Tech. Personally, I'll feel a little better when AA stops closing plants.
I got a flash-back to 1998 last week. I remembered Clinton and Rubin running around yelling the sky was falling to get their IMF bailout. I don't think any of us recognized the game at the time. Yet, an hour after Congress passed the bailout, AG & Co cut interest rates inter-meeting on a futures expiration Thursday. We've heard much about the disconnect the last few weeks. I've come to wonder if it wasn't based on this president's desire to get his precious trade authority. Some funny things seem to immediately happen, including the Brazil bailout. Just something to ponder.
Alas, what I fear that most folks don't understand is that their salvation is their destruction. The next shoe will fall when the Fed starts raising rates. At least, that is my observation of what history teaches.
Just a View from the Fox
Berney |
