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fnu149's  Instablog

I really love to study the stock market. My philosophy for every investor/trader is that you really need to come up with your own strategy. You can be aggressive or reactive; trade often or infrequent; long or short. It really doesn't matter.
  • Fortune 500 actually grew 0.8% revenue from 2007 to 2008

    I read an article from Fortune, and found out that from 2007 to 2008, Fortune 500 companies actually grey top line revenue 0.8% to a total of 10.7 trillion, while profit fall 84.7% to 98.9 billion.

    I was really surprised that top line revenue actually grew.   Since consumption represents 70% of GDP, let's simply take a look at retail sales chart.  Seriously, top line revenue for retail sales from peak to trough has only been corrected at about 12%.  (See Chart)

    The recession that we are experiencing has to hit the consumers harder before we bottomed.  It just doesn't make sense that consumers can lead us out of the way after experieicng just 2 to 3 quarter of consumption contraction.  To me, it's just doesn't make sense.  Especially in the US, we have to deleverage and reach a consumption level that can be sustainable.  I really think that top line revenue across the board in all retail sales combined should be corrected atleast closer to 20%.  Therefore, the chart on the left will sooner or later trend lower.

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    May 16 04:46 pm | Link | Comment!
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