Clear to me that we have a dual economy in the US. The first economy derives a large % of their sales from emerging countries. This economy is doing very well. It includes companies like intel, microsoft, abbot labs, catepillar, john deere, cummins etc, freeport mac, tiffany, coach, jp morgan etc.. Primarily S&P 500. Their sales are increasing at or near double digit rates and their worldwide employment has been growing nicely. Many pay a nice dividend - double a 10 year treasury. The piigs fiasco to date has not had a big impact on their business. Despite the contagion, S&P 500 earnings imo will be in the $100 range in 2012.
The second economy derives the vast majority of its sales from the US. This economy is not doing very well. It includes companies like best buy, toll brothers, whirlpool, us steel, hca, wells fargo, us bank, bbt etc. Their sales and employment are essentially flat. The second economy also includes many small companies which will face significant added costs if and when Obama care is implemented.
I've been a buyer of the first economy and high quality regional banks and will continue to do so if they continue to get murdered.