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Motley Fool Global Gains / GGM: Global Gains Philosophy


Subject:  Re: The bear slows Date:  4/29/2009  2:06 PM
Author:  TMFTheSnake Number:  1542 of 5166

I heard an interesting thought along these lines. Cost cutting usually comes about through firing employees, which will reduce consumption later down the line, so the surprising earnings of companies in Q1 despite lower revenue numbers is a forewarning of harsh Q2, 3, 4, etc.

Cost cutting is limited in its effectiveness and the question must always be asked, how deep is too deep?

Not to say we will be seeing a market tank soon, but I wouldn't rule it out given that the market is supposed to be forward looking and all.
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