Corporate Profits Might Be Falling, But Don’t Let Yours…
Corporate Profits Might Be Falling, But Don’t Let Yours…
The Oxford Portfolio Update - January 22, 2009 (Broadcast #842)
by Louis Basenese, Oxford Club Senior Analyst
Forget the four-day rally for the S&P 500. Or the fact that it traded above its 50-day moving average yesterday for the first time in weeks. Unless you’re a technician, these feats hold little value.
What matters instead, is what’s going on at the company level. And two headwinds exist that can’t be overlooked.
First, companies keep cutting dividends. At the fastest pace in 50 years, no less, according to Howard Silverblatt, Senior Index Analyst at S&P. Already this year, seven companies in the Standard & Poor’s 500 index have decreased their dividends, wiping out roughly $12 billion in payments investors were banking on. Read more…