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Strategies & Market Trends : Waiting for the big Kahuna

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To: Berney who wrote (9110)11/4/1997 1:51:00 PM
From: Joan Osland Graffius  Read Replies (1) of 94695
 
Berney, >>The question I'm seeking help on is what you and others believe the long-term EPS growth rate. Is the current 12% sustainable and, if so, for 5 years? Then I'll just let the formula do the talking and we'll see.

Some words here, if it is true that EPS growth rates have come from elimination of or using cheaper labor, those companies using asian labor should be able to increase their EPS. On the other hand those companies that rely on US labor should be in trouble unless the US labor is used to sell us cheaper asian goods or we have a recession. The problems with a recession are obvious. We could conclude that the EPS for the next year could grow if most of the labor cost of the SPX is asian, from some South American countries or used to sell us cheaper goods.

What is wrong with this picture?

Joan
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