MaverickBian

S&P 500 Earnings vs. Valuation Matrix

sony's profit fell by 90%...

Samsung's down by 44% so far...

Toshiba down by 99%...

Honda is warning its future profit...

Corning issued profit warning today...

Remember two facts:
1. Sales volume will be lower, which means unit cost will be much higher.
2. For every dollar lost in markdown, they almost all come from profit.
This kind of profit squeeze will cut business profit sharply during economic downturn.

My guess is 30% is pretty normal, 50% is doable, and in-red for some business.