Tags: fidelity | earnings

Fidelity Guru Sees Earnings Surge Ahead

Monday, 10 Aug 2009 12:03 PM

By Dan Weil

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink

Trevor Greetham, director of asset allocation for Fidelity Investments, says corporate earnings are headed much higher, thanks to a vigorous economic rebound.

“There’s a strong, synchronized V-shaped recovery underway,” he tells Bloomberg TV.

“It’s starting off with the manufacturing and inventory cycle. But you’re also beginning to see signs of the property market firming up here and there as well. … I think there is a very high likelihood of strong price rises in property over the next year or so.”

Greetham takes note of a Conference Board survey measuring the confidence of U.S. CEOs.

“Last quarter it came in at 24, the lowest reading in 25 years,” he says. “This quarter it came in at 55. Suddenly, things are good.”

And what does that mean for earnings?

“It’s a fantastic leading indicator of the profit cycle,” Greetham says.

“Maybe it won’t be this earnings season, maybe it will be next quarter. But we’re going to see a tremendous recovery in profits that analysts aren’t factoring in yet.”

When the economic cycle turns, “it turns very suddenly,” Greetham says. “That’s what’s been happening in the last three to four months.”

BlackRock chief equity strategist Bob Doll agrees with Greetham on earnings.

“Earnings were better than expected by a wide margin, and the guidance has been a bunch better and more of it than we saw three months ago,” Doll told CNBC.

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 

You May Also Like
Around the Web

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved