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RE: TIB: Today I Bought (and Sold) - An Investors Journal #404 - Offshore Oil Drilling, Semiconductors, Oil, Oil Services, US Retail, Banks, HR, Defence, Covered Calls
Earnings are still fundamentally broken as the only reason they are showing growth is due to buybacks. There will eventually be a time when Companies can no longer buy enough to shares to prop up earnings.
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Yes buybacks are an issue especially in a low interest rate environment - and that got a whole lot easier with the last softening of yields. The biggest problem with earnings is the way buy side analysts are rewarded. It is is easy to get earnings beats if the buy side analyst reduces the estimates which is what they do.