Given signs of inflation QE ends in June taking wind out of the S&P. The fiscal year for S&L govts starts in July and big tax hikes and spending cuts are due. State restraint is already visible in reduced employment. In Oct federal spending cuts commence as fiscal ’12 begins. In Q1 ‘12, we will see headwind as the payroll tax cuts and bonus depreciation allowances that expire at the end of ‘11 won’t be extended.
Tag Archives: S&P
Sellin’ Outside the USA
S&P 500 sales did quite well in Q4 — up 7.7% and ahead of estimates by a country mile. But, from what I see most growth in sales is coming from outside the USA! Here, revenues are growing at barely a 3% annual rate. The pace is around 20% for foreign-derived sources. The question is what happens to these sales if foreign markets slow and more importantly what does this mean for all important job growth here at home?