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Earnings Reports Threaten to Deflate Balloon Boy Dow

Not all assets, forget those related to housing sector: home builders, furnitures, appliances, mortgage banks, commercial REITs. Also, after ramping up more than 50% since Mar 9th, the highly anticipated correction is due any time, in nominal terms.


On Oct 19 09:00 AM Faisal Humayun wrote:

> There is no doubt that the analyst earnings estimates for the next
> fiscal are way too optimistic...Thus, when Companies fall below these
> optimistic numbers, there is bound to be some correction in the markets...
>
>
> However, there is no concern of another big crash in the markets...At
> least in the forseeable future...The reason - ample liquidity to
> support almost all asset classes...
>
> Moreover, any weakness in the markets or the economy will be tackled
> by more quantitative easing or stimulus packages (which means more
> money to speculate in the markets)...So over long term, the Dow is
> set to go higher in nominal terms...