Wednesday, October 07, 2009

Two Predictions About The Earnings Season

1. In absolute terms and in relation to what so-called analysts officially expected just a few months ago, corporate earnings will be really bad.

2. Relative to current official expectations (-25% compared to the already depressed earnings last year), earnings will in most cases, as they nearly always are, be "better than expected", thus promoting the belief that you should buy stocks even though they're objectively expensive.


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