"Ned Davis of Ned Davis Research told clients in a report Monday, "one can clearly see the disconnect between stocks and the economy by comparing all-time record highs on the Dow Jones Industrial Average and the S&P 500 on April 11, with the barely growing revenues on the S & P 500 over the last year." The popular belief among analysts is that profits will start soaring at double-digit rates later this year as uncertainty about U.S. budget cuts and payroll taxes ease along with improvement in the European economy. Davis said the people expecting strong growth "could be right, but I can't see it yet.""
Useful reminder here. Don't focus too much on EPS, it's a below-the-line number. Top-line much less susceptible to distortions.
Useful reminder here. Don't focus too much on EPS, it's a below-the-line number. Top-line much less susceptible to distortions.
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