Interesting Bloomberg news story
about stock market earnings which makes two points. First, the U.S. stock market is still very expensive as the decline in stock prices have been more than compensated by an even bigger decline in earnings. By contrast, in many other countries, including Sweden, the decline in earnings have been smaller than the decline in prices. Combined with the fact that U.S. stocks were more expensive to begin, this means that U.S. stocks should be avoided in favor of stocks in other countries.
The other point the article makes is that part of the reason for the profit squeeze is that input costs have risen more than selling prices, squeezing margins. Falling margins imply that underlying inflationary pressures are stronger than what finished products would suggest, and implies that companies will henceforth be more reluctant to accept further margin reductions and more willing to pass on cost increases in the form of higher selling prices.