Monday, July 27, 2009

PM MARKET WRAP "IN THE LAND OF OZ"

http://www2.standardandpoors.com/spf/xls/index/SP500EPSEST.XLS S and P earnings info from website.


As Rpt EPS for 12 Mo Sep,'09 estimated to be negative ($-1.01 EPS) - first time in index history

SPX dividend yield last 12 months is 2.6% !!!! You know, companies have to make REAL earnings to pay REAL dividends.

"You can only cut so much...." to show earnings.....it all depends on the Consumer...how he doin?

GRAND BEAR markets of the past ENDED with PE ratios for SPX in single digits, and Dividend yields near 6%. AT 3% was near 2000 bubble top, so whats 2.6%??

Paying high stock prices for companies that cant back it with real earnings will probably lead to tears.

Parabolic moves smell of manipulation and can come to crashing halts.

From peak in 2008 Office Contsruction is off 50% (MMQB.com 24/7 column "where's the bottom?") "It appears we have not yet hit the bottom of this construction downturn", Chief Economist Kermit Baker PHD

"AIA American Inst of Architechts JUNE ABI rating was 37.7, far below the 42.9 from previous month." THIS score indicate a SHARP decline in demand for design services" which is where the NEW RECOVERY would be planned....

from SPX

"Getting less worse if different than getting better...." ..." and significantly different than being good"

from the land of OZ over and out

D

No comments: