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Maybe it's not just QE that explains the two-year stock market rally. Eddy Elfenbein notes that...

Maybe it's not just QE that explains the two-year stock market rally. Eddy Elfenbein notes that S&P earnings for 2010 far exceeded expectations: "The S&P 500 earned $83.78 for 2010... [which] would have been considered insanely bullish a few months ago."
Comments (7)
  • Bozerdog
    , contributor
    Comments (464) | Send Message
     
    this liberal terrorist, we all know ben is inflating the world with his wmd's of QE. his sidekick obama is bad for business too. palin for president!
    25 Feb 2011, 02:00 PM Reply Like
  • Steak
    , contributor
    Comments (53) | Send Message
     
    I'm sick of this "earnings" bullshite: www2.standardandpoors....

     

    its old numbers yes, but the estimates for "operating" earnings for 2010 was $74.98, while "as reported" was estimated at $45.50...lets all just clap our hands and pretend the writedowns didn't actually happen
    25 Feb 2011, 02:09 PM Reply Like
  • nobby73
    , contributor
    Comments (1177) | Send Message
     
    I'm with you, I hate this operating earnings trickery, as the writedowns column has been used to such excess, it's become totally misleading. As commented below, add up the profits for the oil majors from the rise in crude, and the reserve releases for the banks (funny how this gets put into operating earnings on the way back), and it doesn't look so cheap to me...
    25 Feb 2011, 05:00 PM Reply Like
  • Roadstar Biker
    , contributor
    Comments (71) | Send Message
     
    Bozerdog - do you have anything substantive to back up your assertion, or are you just trying to see how many empty political buzzwords you can cram into a single sentence?
    25 Feb 2011, 02:11 PM Reply Like
  • Bozerdog
    , contributor
    Comments (464) | Send Message
     
    the later...its friday, i don't get paid until next week and i spent my last $40 filling up my car. if the price at the pump were what it was back in sept i would be able to pick up a pair of flip-flps for our beach outing this weekend...

     

    If Palin were president we would drill more holes, have more oil and i could get my flipflops, if ben would stop qe oil would be cheaper, if obama wasn't such a liberal we could at least open up a new war front...

     

    i went ahead and thumbs downed myself on both comments.
    25 Feb 2011, 02:20 PM Reply Like
  • Roadstar Biker
    , contributor
    Comments (71) | Send Message
     
    Steak - nice attachment. It'll take some time to chew through the numbers and digest it, but that's the hallmark of a grown-up meal.

     

    Its a nice change from some of the pre-digested pablum that sometimes gets served here...
    25 Feb 2011, 02:15 PM Reply Like
  • TruthSayer
    , contributor
    Comments (85) | Send Message
     
    Okay here is the breakdown roughly ~$20 of earnings is from the INCREASE of the energy and financial sector from 2009 to 2010.

     

    ~12 for energy - Did everyone forecast the price of oil right? $62 to $80 - 2010. No harm for oil prices to rise for the US consumer - right?

     

    ~7 for the financial sector which really did they "earn" that how much was bailouts and FASB readjustment so they can say they "earned" it.
    25 Feb 2011, 03:24 PM Reply Like
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