The Lehmann Letter ©
Yesterday’s “Wall Street Journal” article by Tom Lauricella on earnings and the stock market (http://online.wsj.com/article/SB10001424052748703811604574536300482504172.html) confirmed our September 17 posting on “Profits & Profit Margins” and our October 30 posting on “10,000 Tops?”
Profit-margin improvements, not sales-volume growth, drove the stock market’s recent surge. But how long can earnings continue to climb without a boost from sales? That’s the key question.
© 2009 Michael B. Lehmann