the back of the envelope math is that corporate profits should be three times GDP growth in developing economies (under $5 trillion north of the equator, south of the Himalayas).
the throbbing brains opined that GDP would be negative (thinking -5%) for the year which implies -15% for corporate profits if the auditors can be believed
trail earnings at 450 less 15% is 382. thinking twenty times the trail is more than generous for the quicksand. index target 8000.
trading at 10,300 27 x the forward, 22x the trail, and 20 % higher than Goldman's target of 9000.
thinking lower
the throbbing brains opined that GDP would be negative (thinking -5%) for the year which implies -15% for corporate profits if the auditors can be believed
trail earnings at 450 less 15% is 382. thinking twenty times the trail is more than generous for the quicksand. index target 8000.
trading at 10,300 27 x the forward, 22x the trail, and 20 % higher than Goldman's target of 9000.
thinking lower
then there are those inconvenient financials that compose 40% of the index and frankly there is no agreement within a bomb blast whether there is any capital left in the system.
hedge it with a long that is not clearly understood but has been creeping toward a donchain break out
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