6-18-2012: WITHOUT REVENUE GROWTH, IT WILL BE HARD FOR U.S. COMPANIES TO GROW EARNINGS FROM HERE AS THE PRODUCTIVITY "PLAY" HAS MOSTLY PLAYED OUT. Slowing revenue and profit growth will make it hard for the stock market to move meaningfully higher.
October 29, 2014: Solid Q3 revenue and earnings results have calmed investors' nerves. The global economy, while frustratingly in slow-growth mode, is stable and sustainable. This is very good for corporate profits and cash flow.
October 8, 2014: The surge in the U.S. dollar vs. most currencies is causing near-term concern among investors as it will dent profit growth for multi-national firms based in the U.S. And it's caused a massive sell-off in commodity prices and stocks.
November 18, 2014: U.S. corporations are experiencing record high profitability. This will continue because businesses are 1) utilizing technology to extract more money from consumers, 2) utilizing technology and automation to reduce the need for humans in their businesses, and 3) a slow growth, but steady, world economy is very good for profit margins.
6-18-2012: THE DECLINE IN OIL PRICES IS UNDOUBTEDLY GOOD FOR THE GLOBAL CONSUMER AND CORPORATE PROFITS. Based on the supply growth in the U.S., there may be serious downside pressure on Nymex prices. Our country is making greats strides to becoming oil independent.
Vital Signs Chart: U.S. Companies Making Money at Home
THURSDAY, August 30, 2012 - U.S. companies are making money at home despite the volatile global economy. Domestically earned profits of nonfinancial firms rose to $1.1 trillion in the second quarter, the fifth straight quarterly increase. Profits from Europe, China and the rest of the world have been uneven, dropping in the first quarter before edging higher in the second.
4-9-2012: WHY THE SHORT-TERM RALLY IS LIKELY OVER. The market powered higher in the face of declining earnings estimates. This is unusual, and was likely the result of an over-sold market during the Euro crisis. However, it will be hard for the market to move much higher until earnings estimates begin to move up.
September 10, 2013: The rapid increase in the U.S. 10-YR Treasury and resulting increase in the 30-yr mortgage rate is slowing down the housing market. It's the rapid increase that's causing the pause, not the still low absolute level.
4-20-2012: THE CHINESE CAR MARKET IS STALLED THIS YEAR. The government is purposely slowing down car sales this year due to congestion, pollution, and an over-heated economy. Hopefully 2013 will return to normalcy.