Earnings present a positive picture. The $ weakness is helping. Harold
Nearly 60% of S&P 500’s market capitalization has reported Q2 earnings, and the results have been generally positive. Reported earnings have outpaced consensus estimates by 4.4%, and only 11% have reported below consensus earnings. Reported revenues are beating the consensus by 3.2% with currency driving upside.
And in spite of the current and apparent health of our corporate structure, our politicians seem bound and determined to drive the Federal government off the edge of the cliff. Any concerns of a Eurozone default or dissolution should be dwarfed by the potential of a USA dissolution. Too many of our political powers seem to want the Federation to lose it's authority.
Expect this dis-functionality to continue for some time. One of the curious facts of our existence is that we have large numbers of politicians who are completely entrenched on one side or the other. View, for example, the many democrats who actually could not live with ANY, not one bit, of reductions in entitlements. On the other side, understand that there are many, many Republicans who will not countenance ANY increase in taxes. I'm a reasonable person and a pretty good analyst of income and expense statements--it is pretty obvious to me that we have to do something to the tax structure to increase receipts (whether by eliminating loopholes or by raising rates) and we have to do something to reduce our entitlement liabilities. Almost any wise observer would say the same thing--Warren Buffett and Ken Langone have both said it, for example.
Our politicians of both stripes are betting on the opposite--that the reasonable people in the middle will not determine the outcome but, rather, that the extremes will determine the outcome. That doesn't seem to me to get us very far although I remain very certain that some sort of compromise will happen pretty soon.
"And in spite of the current and apparent health of our corporate structure, our politicians seem bound and determined to drive the Federal government off the edge of the cliff. ...Too many of our political powers seem to want the Federation to lose it's authority."
i'm not sure. i'm sure they all want to do good for the country in a ways that benefit their and their financial backers interests. they don't give a hoot at about middle or any class, only their pocket class.