The big three: Employement, rate cut, and earnings warning season
I have a feeling this March is going to be one for the memory banks. It will start Friday with the February employment report and be followed up by a rate cut and then warning season and reductions in forecasts.
I have lots of cash and lots of it is in FXA, thank you very much.
I am looking for another leg down in the U.S. dollar and the S&P 500 to break below the 1250 low.
Everybody knows business sucked in the first quarter so not making expectations will be forgivable, but I expect many forecasts will be reduced dramatically for the remainder of 2008 and Q1 2009 and the market is not ready for a substantial reduction in earnings expectations. Can business leaders feel much better than consumers feel? I don't think so and that deflated outlook will be reflected in the warnings to come.
I have lots of cash and lots of it is in FXA, thank you very much.
I am looking for another leg down in the U.S. dollar and the S&P 500 to break below the 1250 low.
Everybody knows business sucked in the first quarter so not making expectations will be forgivable, but I expect many forecasts will be reduced dramatically for the remainder of 2008 and Q1 2009 and the market is not ready for a substantial reduction in earnings expectations. Can business leaders feel much better than consumers feel? I don't think so and that deflated outlook will be reflected in the warnings to come.
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