Blackstone vice chairman Byron Wien said in August that he was worried about the second half of 2013. The veteran investment strategist is one of the most prominent proponents on Wall Street of the view that corporate profit margins are peaking, a phenomenon he believes will begin eating into earnings growth and become a negative catalyst for stock prices. Business Insider
That would be Blackstone with $230 Billion in assets. Walmart, PC Penny are struggling. Corporations are trying to play down earning expectations. If earnings come in low, PE earnings goes way up and not likely to happen. Banks earnings have been down, and banks are marking to market in Europe. So there must be a market correction to account for depressed earnings, and everyone worries it will turn into a panic. The correction will boost short term borrowing as long as the Fed supports. The short term borrowing arrives just in time for a debt ceiling hike to flood the market with Treasuries.
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