UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: trader2012 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35400  
Subject: Q4 Should Be Good for Bonds Date: 10/1/2012 3:07 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Generally speaking, when stocks do well, bonds do poorly. That’s why Buy&Hold, “we don’t time the market” investors typically own some of both, so they can hedge their bets. But if Q3 earnings meet their underwhelming expectations, then stock prices will fall, and bond prices will rise even further. That's good for them already in, tough for those still trying to get in. Shop carefully.
-----------------------------------------

Once again future guidance from these companies [i.e., those soon to be reporting their Q3 earnings] will be critical and we will get more clarity once we know who will occupy the White House. But the guidance in the past few months has not been a positive. Of the 101 companies that provided guidance for the third quarter, some 72 percent were negative.

Things are seen picking back up in the fourth quarter, with overall earnings growth expected at nearly 10 percent - but many sources I speak to are questioning such a bounce from negative to double-digit growth. Revenue is still expected to be anemic in the fourth quarter, coming in at about 3 percent with materials seen rebounding 25 percent based on increased demand for construction, metals and mining.

By all counts, these numbers are underwhelming. Particularly in a market that does not have a whole lot of room for error with the Fed bond buying program taking stocks high and expectations even higher.
http://finance.yahoo.com/news/stocks-may-headed-rude-shock-1...
--------------------------------
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement