Flying Aqua Badger
Dan Hill of the Flying Aqua Badgers' home from home. Using this blog to learn about himself. Be warned, it contains political and economic discussion not suitable for those whose spectrum is restricted only to the mainstream. It could be done in private but where's the fun in that...
Sunday, July 12, 2009
Vain Indications of Recovery
You know you're looking at a headline desperate for positive signs in the economy when it reads: "Number of profit warnings 'fall'". Since it is the lowest figure since Q2 2003 it doesn't really give much away in itself apart from expectations are more realistic than they have been for six years.
After a year of economic correction, company profit projections finally have license to be closer the mark unlike boom-time where if you're not hitting stupidly high levels then the market cripples your share price.
What would be great is if we did move to more conservative estimates where so greed doesn't force us down the wrong alley again. Wishful thinking isn't the word.