From the Wall Street Journal:
Earnings season has offered plenty of reasons for investors to be optimistic. Even more good news is on the way.
With over 80% of S&P 500 companies having posted quarterly results, the profit engines at the biggest U.S. public companies are humming along. In an environment of elevated valuations, strong earnings growth helps justify record highs for stocks and suggests the bull market still has legs.
First-quarter earnings are on pace to increase 13.5% from the same period a year earlier, according to FactSet. That would be the third consecutive quarter of year-over-year growth and the quickest pace since the third quarter of 2011, when earnings increased 16.7%.
Growth has been broad-based, with energy, financials and technology leading the way. Ten of the S&P 500’s 11 sectors are set to report earnings growth, with the small telecom sector the only one lagging.Dropping the world's highest corporate tax rate of nearly 40% down to something in line with the rest of the world, say 15%, would make those earnings even brighter.
This would allow companies to keep more of their earnings, giving them more capital to invest in expanding their businesses, which would trigger job growth, which would reduce the use of entitlements while at the same time generate more taxes, particularly those that keep Social Security afloat.
Reagan had Reaganomics, which worked.
Trump has capitalism, which works better.
On November 8, 2016, the American people said, "Trump the Establishment!"
Now read the book that explains how and why the press missed this historic the election.
It is available on Kindle, and in paperback.
And then read the original, "Trump the Press," which chronicled and mocked how the media missed Trump's nomination.
It is available on Kindle, and in paperback
Autographed copies of both books are available by writing me at DonSurber@GMail.com
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