Monday, April 8, 2013

Global Trade & S&P 500 Revenues (Excerpt)

The good news is that the global economy is growing, with the volume of world exports rising to a record high in January. The bad news is that the growth rate is in the low single digits--at 2.5% y/y during January. S&P 500 revenues per share is highly correlated with the volume of world exports. I still expect that revenues will increase by 5%-7% this year and next year. I am encouraged to see that the consensus expectations of industry analysts for revenues both this year and next year have been rising over the past few weeks. They now expect an increase of 5% both this year and next.

Today's Morning Briefing: Pump It Up. (1) Whatever-It-Takes goes global. (2) Central bankers gone wild. (3) Mandate madness. (4) Delusional macroeconomists. (5) From the Great Moderation to the Great Recession to the Great Deformation. (6) BOJ pumping air into global bond bubble. (7) Draghi’s best-in-class balance sheet. (8) Obama’s subprime solution. (9) Are agency mortgage REITs too hot? (10) Global trade growing, but slowly. (11) S&P 500 revenues expectations rising. (12) Focus on Transportation industries. (13) My favorite robot. (More for subscribers.)

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