Believer or Non-Believer

by Laura Ehrenberg-Chesler on October 21, 2009

in Earnings,Economic Indicators,Investment Strategies

Caterpillar, Freeport-McMoRan, and Sandisk are among the many companies that have reported positive earnings and revenues in the past few days, thus giving us concrete evidence for the possibility of a more sustained or “real” recovery.

Caterpillar introduced 2010 revenue guidance of up 10%-25%, and raised 2009 Earnings guidance as well.  One segment of CAT’s upwardly revised numbers foreshadows the potential for a sharper recovery in construction, and for mining equipment for commodities.

Freeport reinstated their dividend which is a reflection of improved global market conditions and strong operating performance.   Sandisk, a leader in flash memory, swung to a third quarter profit citing stronger sales and improved margins.  The company stated that “improving industry fundamentals” likely mean more growth in the fourth quarter and next year.

As we have stated in previous blog posts, we have been closely monitoring economic and company data for signs of strength.  We are getting those signs, and the market is reflecting that strength.  This has rewarded “believers, and caused a great deal of frustration for the “non-believers”.

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