Don’t know how much interest there is amongst the ForexLive community in the US equity markets, but during this docile Asian lunchtime lets look at a few points.
We are in the midst of Q3 earnings reports, and they haven’t been impressive. With ample liquidity and enormous productivity improvements, earnings have been astounding in the past 3 years. But all good things must come to an end, indications of which we have been seeing in the results of reporting US listed companies. Revenues & earnings are not beating like they were, coming in weaker.
Up until recently the tech giants like Apple and Google have been on a roll, putting up new highs and racking up enormous market capitalizations. Not any more. These stock market leaders recently faltered, their share prices tumbling. Its never a positive when leaders like these start to stumble.
There are other fears weighing on the market which we as FX market participants are all too familiar, most notably the resumption of European fears after Draghi’s “do whatever it takes” warning has lost its effectiveness somewhat. Add to this the fear of deflation, the Fiscal Cliff … and the result has been a sell-off. In percentage terms it hasn’t been large. Indeed, since 2009 the S&P500 has escaped a 20% fall, sort of an ‘official’ measure of a bear market.
So, what say you ForexLive participants? Any thoughts/comments on US equities? Where to from here?
