The Administration can propose all the stimulus, taxes. bank bailouts, union bailouts, car bailouts, social programs, to nationalize all of us, but at the end of the day if profits of corporations do not rise, we all will be miserable!
In particular, the stock market is unlikely to have a multi-year move on the upside unless earnings per share rise as shown in the above graphs (click on chart to enlarge).
At some stage of the Presidents' whirlwind travelling around the world he has to sit down with his advisers and face the fact that our industries are going down the tube. The simple question they have to ask themselves is: What are we going to do about it? Please let us know Mr. President.
To find out more about my in depth view of the markets and my strategy just visit our website https://www.peterdag.com/ where you can review The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific money management needs. I will be happy to speak to your investment group on how the business cycle impacts investment strategies and the choice of asset classes. George Dagnino, PhD
Editor, since 1977
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