Scott Grannis continues to stay optimistic after today’s downward revision to second quarter GDP:
“Regardless, it remains the case that profits have more than doubled since 1998, while the S&P 500 has not budged, on balance, over the past 12 years. As I’ve been arguing for a long time, the equity market looks very undervalued to me. Perhaps that’s because, like the bond market (see my post from yesterday), the equity market believes the future will be very grim.”
Read the rest of his thoughts: Corporate profits are very strong.
[via Calafia Beach Pundit]
“Meanwhile, of course, growth across the overall United States economy has been lackluster, slowing down significantly in recent quarters. And while companies may be sitting on mountains of profits, they have still been reluctant to use those profits to hire additional workers.”
Readers of The Wall Street Journal are not that confident: