As S&P Hits All-Time High, So Do Profit Warnings
Back in mid-2011 I wrote that we were about to see the largest downward earnings print in over a decade. Then a few months later Reuters reported just that. The largest drop in earnings expectations since 2000, I believe. Since then earnings and earnings expectations have consistently been headed the wrong direction. While I cannot say this as an incontrovertible statement, we have likely seen the peak in corporate earnings this cycle. Possibly the peak forever depending on the future of corporate capitalism.
Now, today, Gannett is reporting that we are in the midst of the largest corporate profit warning in recorded history. In the last thirty days record numbers of bobble heads in the idiocracy have been telling us this market isn’t any kind of bubble. This is happening immediately after what I classified as possibly the largest astrological turn date in thousands of years in late November of 2013. Totally unrelated? Coincidence? Absolute nonsense? Let’s just watch the future unfold together.