Plot of S&P Composite Real Price-Earnings Ratio and Interest Rates using data from irrationalexuberance.com/shiller_downloads/ie_data.xls (Photo credit: Wikipedia)After suffering their worst two weeks of the year, stocks will look to quarterly earnings to determine whether the recent pullback has been exhausted or more losses are justified.Next week, 86 companies of the SP-500, report their earnings and this may mark a certain trend in the market. But, if the earnings season is always a time of nervousness and volatility, this time, this situation is more complicated. What happens is the "noise" from Europe is increasing. News from Spain are very bad.
But this country is not alone. Italy is also being that quote as the source of a new problem in Europe. Also the proximity of elections in Greece will bring news that destabilize the economy. Every time we hear more strongly the idea that Greece will depart from the Euro. This could trigger a flight "mass" of the single currency of countries with serious problems in Europe.
Unfortunately, this news already present, and most likely intensify in the coming weeks just... Continue to read
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