JT, Sell to the sleeping point.
It was nice to sleep in today without worrying what Mr. Market was doing.
I agree with you about the absurdity of focusing on quarterly earnings. I noted before that I did an analysis of the S&P companies. Over a 5-year period, only 20% were able to have annual, sequential increases in earnings. Yet, the market reacts violently when they cannot do it quarterly. Silly! But, it is the reality of the environment in which we need to play this game.
That said, MER shows us that all is not well in the Land of OZ. Earnings last quarter were $1.33; this quarter $ .28 (before the "one-time" charge. No matter how you look at it, that's a significant decline in a short period of time.
The analysts didn't lower the GM earning's estimates for the June quarter until the strike had been going on for 2 weeks. This quarter is expected to be marginally negative for the S&P, but these idiots still have the next quarter showing (as I understand it) a 10% growth rate year over year. This certainly doesn't seem realistic to me.
There are very few stocks in the Big Boyz in which you have a profit if you bought them in June, or July, or August, or September, or ...
I'm not trying to call the market, but just waiting for the market to show me that the trend has changed. In the meantime, I'll grab a buck where I can.
Berney |
