The long awaited Q-3 earnings season is here and it is not off to a good start.
- Wells Fargo profit inches up -down in the after hours
- Intel Profits Slide Amid PC Slump – down in the after hours
- JPMorgan kicks off bank earnings with a miss – down in the after hours
- Caterpillar Inc. Slashes Its Outlook – down 45% over the last 12 months.
Now, call me crazy, but I am starting to see a trend here. Not a good sign when Shiller’s adjusted S&P P/E is sitting at 25 or at the 3rd highest level in history. That is, right behind 1929 and 2000 tops.
In other words, as earnings and the US Economy begin their collapse, it appears investors don’t mind paying for stocks at insane valuation levels. I have no doubt that it will work out great for them. It always does.
