“Meet EPS..miss on revs…fiscal cliff concerns” and ….JK On the road again

As of today we are over the half way period of S&P 500 company earnings (90 day treadmill) reports. As usual, Donald “The Brain” has been diligently listening, reading, reviewing and analyzing these reports by the droves. A common theme has risen to the top this season which comes from the mouths of more than 80% of our followed executives sounds like this:

“We are happy to report X earnings….” (beating estimates) …”revenues have been challenging” (missing estimates, slower revenues) …..”and we are concerned as well as our customers and vendors about the fiscal cliff” (the fiscal cliff is of much greater concern than we thought it would be by key executives and is making for a domino effect of a collaborative holding back on projects)

Overall the theme is slowing…not stalling, or falling, but definitely slowing. This is not surprising to us at all and is why we have felt the capital markets have been overvalued and too optimistic late this year. It appears as of late capital markets are taking a more realistic view, again which we have been happily expecting.

The challenge will be to determine if we continue to slow, pick up steam or just plod along.  The macro data appears to be pointing up for the housing sector, which has been an anchor for a LONG time and is a very large portion of the economy. We will keep you posted.

Today I find myself on the road out of the state but as usual tethered to the office easily via technology. My only issue with this trip is the absence of “Pumpkin Day” for my 7-year-old daughters school…yes it was another late night before the annual dress the pumpkin contest, but they will hopefully forgive me this time, whew…

Have a Great Day and a Super Weekend!

JK