The past six trading days has not been kind to the market, despite some rather good earnings reports from AMD, GOOG, and many other companies one might expect to not be faring so well. However, one of the most important companies; Alcoa, reported earnings that weren't so good, as I expected. In contrast, this week, CAT report quite nice earnings.
I want you to forget about earnings reports from JP Morgan, GOOG, AAPL and all of the other companies the USELESS financial media focuses on because they DON'T MATTER nearly as much as the earnings of AA and CAT. The reason is quite simple. These companies have cyclical businesses, so they give you an idea where we are in the economic cycle in advance.
So what can we conclude? AA's earnings were bad while CAT's earnings were good, right?
Ah yes, but this is where you have to understand where their earnings come from.
While AA's earnings are primarily from U.S. business, most of CAT's earnings come from overseas.
In fact, by my estimates, a huge chunk of CAT's earnings over the past 3 quarters have come from
CHINA and BRAZIL
As you may know, China recovered from the U.S.-induced global recession many months ago. In fact, China's fourth quarter 09 GDP was a whopping 10.7%! For 2009, China delivered a stunning 8.7% GDP.
While a bit lower, Brazil's growth is expected to go on a tear in 2010.
So is CAT is a good investment?
Subscribers know my take on that. You might even search the article archives if you really want to know because I recall discussing it briefly a few months ago.
If you've read all of my articles then you should have a pretty good idea where the U.S. economy stands.
If you are a subscriber to the AVA newsletter, you know precisely what is going on, not only in the U.S., but across the globe.
The January newsletter was a massive report, some 100 pages, more than 70 pages of which were all global economics.
If you want this report, you should sign up today because we are still running a promotion on subscriptions, which isn't expected to last much longer.
So where is the market headed from here?
I'll tell you this much. It has NOT reversed its bullish trend. Those who have been following me for some time know that I issued a market buy signal in March 2009 when the Dow was 6500.
Subscribers of the newsletter know well how I kept them in the market all the way up through 10,500.
The easy money has been made.
Going forward, you are going to need to have the guidance of a top investment analyst if you want to avoid losses and make big gains.
My track record should help you decide for yourself if I'm the one to guide you through this long storm.
In the last special report, issued last weekend, I laid out a 30-page analysis of the markets, including China and Brazil.
I also discussed numerous securities and profiled the technicals.
Subscribers know where the market's tipping point lies and it's safe to say that most of them have been largely in cash since January.
While we have not yet reached a market reversal, it isn't far off. But that doesn't mean we will hit it anytime soon.
I'm here to alert you when we will.
If you want to have access to the massive January issue, as well as two special reports released since then, plus the December issue... over 200 pages of my insights, you should subscribe today.
Subscribe now at a reduced rate, or subscibe later once you've learned the hard way you need expert analysis. But if you are a serious investor, you will eventually subscribe. I just hope that time comes before you lose anymore money.
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