by Jared Levy on June 24, 2010
On Wednesday’s episode of Fast Money on CNBC, there were a ton of topics discussed and I wanted to clarify my thoughts and elaborate here (especially for topics I didn’t get to address in full on the air).
With the third-quarter earnings season ahead of us, let’s take a moment to reflect on the second quarter that is wrapping up. During the last reporting period, 480 stocks in the S&P 500 Index had reported as of Tuesday’s close. Out of these, 389 exceeded analysts’ consensus view, with overall net earnings growth of 54.15% year over year. This leaves the S&P index with a trailing price-to-earnings (P/E) ratio of 16.1 and assumes a forward P/E of 13.3, based on analysts’ expectations of $81 in net index earnings by this quarter next year.
While P/E ratios seem to be in a relatively neutral-to-low state looking forward, there are still issues to contend with, namely housing and unemployment.
According to a Fitch report from earlier this month:
- May Residential Mortgage Backed Securities (RMBS) delinquencies declined for the second straight month, following a steady four-year increase; this is a positive.
- For subprime: 44.8%, down from 45.2%
- For Alt-A (borrowers with less than full documentation and lower credit scores) 33.9% percent, down from 34.1%
- They did note, however, that “approximately nine percent of performing Alt-A loans and 37 percent of performing subprime loans are modified and have a substantial risk of re-default.” This is still a negative sign.
This week, we got the following data:
5 Comments
Detra Derenberger
Noticed your Webblog bookmarked on Reddit.I appreciate your web blog and marketing and advertising tactic. Verify out my Farmville Guideline if you get yourself a moment.
youtube marketing
I love your website! did you create this yourself or did you outsource it? Im looking for a blog design thats similar so thats the only reason I’m asking. Either way keep up the nice work I was impressed with your content really..
admin
I designed it myself, still a work in progress 🙂 WordPress is very easy to use and customize, thank you for stopping by!
Savannah Presby
Hey man, was just browsing through the internet looking for some information and came across your blog. I am impressed by the information that you have on this blog. It shows how well you understand this subject. Bookmarked this page, will come back for more. You, my friend, ROCK!!!
Oswaldo Maliska
I have to state, you chose your words well. The ideas you wrote on your encounters are well placed. This is an incredible blog!