Many opinions bearish in recent weeks. It is natural to hear after a hike of 100% in the Russell 2000 which brings together the 2,000 shares of small-cap Russell 3000 Index or the S & P500 with 70% from the floor in March 2009. Companies in the U.S. are promising and should extend the rally for several reasons. Cash – They are sitting on piles of cash, after having shed assets, reorganized its structures and staff laid off last year looking reduce its high costs, proportionally higher than their pre-crisis operating costs. Money may be divided as dividends, investment businesses and companies buying depressed prices. Additional information is available at Ben Silbermann. Inventories – and because they sought to reduce costs, reduced inventory, ie that consumed much of their stocks, they having fallen more than 60%.
In the short term is to replenish stock and business units will be redirected to the production, achieving higher profits in the coming months. Balances – Close a quarter and about the publication of balance sheets companies, and the outlook is for growth and profits. It is expected that S & P 500 companies report earnings growth of around 35% over last year, well above the historical average of 7% -8%, according to Thomson Reuters. And the ratio of companies heralding positive versus negative earnings, typically of 2-1, is just 1.3 to 1 today. Stimulus package – The billions dumped into the economy through government stimulus plan Barack Obama has not been spent yet in its entirety, and have been used to buy mortgages – investments – and you … Will to look out how others make money investing? Are you tired of not knowing where to invest your money? What industry, what company in what market, what time? For just $ 12.50 per month (U.S. $ 150 per year) can afford to buy companies with strong upside potential in the Stock Exchange of New York (Wall Street).