A revealing factoid and an insightful bit of analysis from market strategist Ed Yardeni:
With forward earnings around $100 currently, why isn't the S&P 500 at 1600 now? Investors clearly remain concerned about the credit crisis and the possibility of a longer and deeper recession. Why aren't they impressed that S&P 500 earnings excluding Financials were up 10.2% y/y during Q1 and 7.7% during Q2? The strength was largely attributable to profits from overseas, and many foreign economies are turning weaker, especially in Europe. The bearish concerns about earnings may continue to offset the bullish developments for valuation over the rest of the year.
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HillbillyBill of TN 6:58PM August 11, 2008