Tuesday, October 15, 2013

Blissfully Ignoring the Headlines (excerpt)

S&P 500 forward earnings rose to a record high of $119.73 last week. It tends to be a great year-ahead indicator of actual earnings when the economy is growing. However, it doesn’t provide a heads-up for recessions. The forward earnings of the S&P 400 MidCaps and S&P 600 SmallCaps also rose to new record highs last week.

As I’ve noted often in the past, industry analysts have blissfully ignored all the bearish headline news since the start of the bull market. They’ve been right to do so. I have been following their bullish lead as they raised forward earnings to new cyclical highs from 2009-2010 to new highs since then.

Today's Morning Briefing: Blissful Ignorance. (1) Known unknowns. (2) FOMC is data-less and clueless. (3) Ode to Ignorance. (4) Stocks remain blissfully complacent. (5) Where have you gone, Joe? (6) Mind-boggling complexity of Obamacare in one flow chart. (7) Ode to bullish forward earnings and revenues. (8) Refiners weighing down Q3 earnings. (9) Not much gas in gasoline recently. (More for subscribers.)

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