DENVER (MarketWatch) — The stock market has dropped. Corporate profits have collapsed. And profit margins have reverted toward the mean. What is next? Before I dive into the discussion, let me explain the chart below, which I named appropriately, “The pain of mean reversion.” I looked at reported earnings for S&P 500 and compared them [...]
March 6, 2009 | Posted in The Process,The Process All | Read More »
S&P 500 earnings topped out at about $84 a share in June 2007, while corporate profit margins were 44% above their average since 1980. At the time, these numbers were inflated by global bubbles in real-estate, commodities, liquidity, and growth expectations–a lot of global bubbles. Since 2007, most of the bubbles deflated, stocks plunged, [...]
March 3, 2009 | Posted in Stock Analysis! | Read More »
