10/14/2015 – A negative day with the Dow Jones down 158 points (-0.92%) and the Nasdaq down 14 points (-0.29%)
What will your favorite company blame for its earnings shortfall?
There are so many good choices. Interest rates, strong dollar, Mr. Putin, higher labor and insurance costs, slowing economy, slow down in share buybacks, inability to push accounting principals any further, etc…
As was indicated earlier, Q-3 earnings season is not off to a good start. And while Apple may sell a zillion iPhones, destroying the next generation of young narcissists in the process, few other companies can match their popularity at the present moment.
Just earlier today WalMart slashed forward earnings guidance, blaming wage hikes and all sort of other nonsense for their shortcomings. Thus far, Mr. Market has rewarded WalMart with a 10% beating.
Listen, the reality is a little bit different. I think a high percentage of companies will guide lower or miss earnings. Now that that the QE and zero interest rates have worked their way though our financial system, the US Economy is rolling over into a severe recession. And there is nothing anyone can do to stop it. Given today’s overvaluation levels, that is not a good sign for the overall stock market.
But hey, what do I know....Bill Miller: Now is perfect time to buy US stocks
“But we also want people to take money out of stocks because they hate them, so they’re cheap,” he said in a ” Squawk Box ” interview. “That’s exactly the environment we have today.”
I especially love it when they all laugh at 1% treasury yields, followed by an always convenient, “Where else are you going to put your money?”
What these Bozos don’t get, as both Carl Icahn and I have outlined a number of times before……it is a hell of a lot better to earn 1% than to take a 30-50% haircut on your capital. Just as people found out 2000-2002 and then again in 2007-2009. I guess some people never learn.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2015-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2015-2017 will start (to the day) and its internal composition, please CLICK HERE.
(***Please Note: A bear market might have started already, I am simply not disclosing this information. Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. October 14th, 2015 InvestWithAlex.com
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