There’s been a fair amount of commentary on the ‘low’ earnings numbers
for 2009. It’s generally assumed that the severe earnings decline
expected in 2009 cannot possibly be good news for the equity markets.
Here’s how the earnings have been trending (data courtesy
investorsinsight.com).

To read the full article, please visit:
http://financialjoyride.blogspot.com/2009/05/do-earnings-lag-price-bottoms.html

Conclusion:Declining earnings estimate numbers don’t necessarily imply
lower equity valuations and price declines. The earnings decline might
already be priced in.

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