Earning with a Smile

So what’s going on with the economy? Inquiring minds want to know.

One way to look at how the economy is doing is to look at much companies are earning. We’re fortunate in the US because our largest employers need to report how they’re doing four times a year. We’re almost through earnings season. How’d we do?

The headline doesn’t look great. With three fourths of US companies reporting, earnings are down about 12%. But if you exclude banks and brokerages, earnings are up about almost 9%. And the non-financial companies that lost money were mostly builders

So what does all this tell us? Apart from the bursting of the housing bubble, the economy is doing just fine. If the banking system doesn’t melt down — and so far the Fed has done pretty well helping us avoid that—we should be in for better times ahead.


Douglas R. Tengdin, CFA
Chief Investment Officer
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By | 2014-09-03T18:53:24+00:00 May 20th, 2008|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. –
Leave a comment if you have any questions—I read them all!
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