Two thoughts: You may not have been paying attention, but we just finished Q4 earnings season--US corporations are making healthy and sustained profits.
Second, remember the drivel from obama and other economic illiterates about corporations "sitting on trillions in cash?" Guess what. Nobody sits on cash at that level. Major corporations have been spending hundreds of millions and even billions to buy back their own stock, thus reducing the supply and shoring up the market price.
Yes the market seems to be ignoring bad news in the macro world, but this is a classic bullish indicator, not a cause for concern.
Is that why junk stocks are partying like it 1999? Not sure of the connection between profits of IBM or the ilk and the wild speculation involving almost every asset class. The explanation for all of it is free liquidity, not fundamental business issues.
On downwardly revised estimates and earnings for the past two years. Two, sometimes three downward revisions over the last several quarters. Not impressive.
>>Nobody sits on cash at that level.<<
This is not a true statement. My corporation now holds close to twenty billion in cash reserves since the recession began and many corps have followed suit.
The one thing that is true regarding your post is corporations are launching stock buy backs to prop up the share prices.
Earnings are not enough to buoy share prices.
Also, Quantitative Easing 2 from Uncle Sugar has the markets ticking up since last September...not earnings.
With all respect, you should read post 6 by lucky american. He/she is correct, you are dead wrong.
[we just finished Q4 earnings season—US corporations are making healthy and sustained profits.]
LOL.
And in other news, the chocolate ration will be raised from 45 to 28 grams per week....
Got POMO, homo?
http://www.zerohedge.com/search/node/POMO
JWith so many stocks making new highs, how much higher can they go?