The earnings overall are positive but economy data is worsening. So what's going to happen next? My sense is that the earning upsides are most coming from global operations. However, given the high cash level of corporations, a double dip is unlikely. That's why I purchased BAC and CSCO. However, I do not believe the overall market is cheap. The era of 15X multiple is over.
One bright spot is that M&A activities will heat up given the high cash level and cheap credity. Most companies have to look cost savings to increase earning. One way is to merge to take out competitors and realize cost savings.
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