Friday, January 30, 2009

Stocks and profits

From Bloomberg: "The S&P 500 is down 7.8 percent this month, eclipsing the 7.6 percent drop at the start of 1970 and adding to last year’s 38 percent plunge. Profits decreased 38 percent for the 208 companies in the S&P 500 that released fourth-quarter results since Jan. 12. Last quarter is projected to mark the sixth- straight period of decreasing profits, the longest streak on record."

The market was down 38% last year and profits reported so far have declined 38%. Coincidence?