Lost in the Headlines, Economic News Getting Better, Brief Earnings News Update

Good Monday morning!

As we enter the teeth of the 90 day treadmill (better known as earnings season), with much of the public commentary focused on our nick named 90 day treadmill, we thought it timely to mention the latest economic information.

Much of the economic reports are coming in better than expected. One of our


 favorite sites, from Econoday, does an excellent job of giving detailed information on pending (and historical) domestic and newly important foreign reports. As we mentioned in our Q 4 2010 Performance Cover letter, China, in our opinion, is a very important part of our continued economic mending here in the United States. As such, foreign economic success is also important for us as investors.

Our key important, yet still lagging economic report, is the unemployment picture. (Ya, ya, we always want more, but this remains important to us!) We would like to see payrolls increase thereby lowering the unemployment rate to help give consumers greater confidence in spending (remember, by some estimates, almost 75% of our GDP is consumer related.) As we listen to numerous conference calls during our 90 day treadmill time period, we are encouraged by company management statements concerning job hiring, which may lead to greater hiring, and thereby lower unemployment in the future (albeit at a slow pace.)

Briefly an update on Earnings (90 day treadmill):

According to Thompson Reuters a little less than 20% of the S&P 500 companies have reported so far this season with over 70% beating expectations and only 24% missing, which is good in our opinion.

Later, as we continue deeper into earnings season, we will discuss a few interesting metrics and simplify the process with a few easy “non Wall Street” examples.

Have a Good Week !


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