Profits of companies in the S&P 500 are expected to drop 4.3% this quarter from a year ago, according to market data company FactSet. That would be the biggest drop since the third quarter of 2009, when the economy was still clawing its way out of a recession. It would be the first time earnings have fallen more than 1% in a quarter since the end of the recession. And it would also be the first time since the end of the recession that profits dropped for two quarters in a row. Earnings are expected to have fallen 0.7% in the second quarter.
So its another 'first time since last recession...' and I think lower profit combined with no liquidity in the corp bond market means the song is ending. 'Its time...to sayyyy....goodbyeeeee' - andrea bocelli
Oil is still a good buy but market indices could be 40% below highs within 6 months.