Where’s the Beef?


I’m just wondering where global growth is going to come from in the very near future. With Japan still reeling from earthquakes and nuclear accidents, the US stagnating with zero job growth and decades low confidence levels, and now Europe on the precipice of credit meltdown, I ask where is the growth. Granted the BRIC countries are doing the heavy lifting as of late. But without G7 participation, its hard to fathom how long they can pull the rest of the developed nations along given they are, by and large, export led economies who sell their cheap goods to those developed countries.

Recently the outlier analysts are now starting to quietly tweak S&P500 earnings down to the high $80’s from $100+. Couple that with P/E ratio contraction and we could be looking at somewhere between 1050 -1100 on the index. Hardly stuff to brag about…

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