FYI: The bottom line for this bull market may turn out to be the top line.
After a six-year run in the Standard & Poor’s 500 Index, corporate revenue, not corporate profits, is flashing red. Judged against sales, the index has reached a level not seen since the aftermath of the Internet bubble.
That’s a big break with price-earnings ratios, which hover around historical averages. Signals emanating from the two indicators are diverging more than any time since at least 1993 and highlight how badly investors need economic data such as last week’s employment report to extend the rally.
Regards,
Ted
http://www.bloomberg.com/news/articles/2015-02-09/bottom-line-for-s-p-500-is-top-line-as-price-sales-ratio-expands
