Look at this article from CNBC, a popular mass media tool for luring individual savers and investors into the shark infested stock market.
Apparently strong 1st quarter earnings supported a rally, but expected slower earnings in 2nd quarter will result in a 5-10% drop in the market.
A 10-20% drop in the market is typical in Q2 based on the last 3 yrs as a reference? The last 3 year's we have seen the central bankers pump trillions into the markets in the UK, Japan, EU, and US.
Don't worry. You should buy stock on those dips.
Besides, who needs strong corporate earnings when we've got the Federal Reserve pumping trillions into banks, who aren't lending that out quite yet. Maybe they are saving for the upcoming dips too! I mean if you could socialize losses with bailouts and privatize the gains with super cheap Fed money, wouldn't you?
At what point will people wake up to the scientifically engineered economic boom bust cycles and SCREAM, RIOT, at least ACT!
After April Showers, Market Could Spring Higher CNBC.com | March 28, 2013 | 10:13 AM EDT
The stock market is likely to see its typical, seasonal pullback in the second quarter after the first quarter's sharp gains, but unlike previous years, more bullish Wall Street strategists expect a significantly higher end-of-year finale...
Major averages have been on a tear in the first quarter, thanks largely to better-than-expected earnings, further evidence of a healing economy, and ongoing support from the Federal Reserve...
Analysts have jumped aboard the bullish momentum. Goldman Sachs, Deutsche Bank, Morgan Stanley, and S&P Capital IQ boosted their targets significantly, citing the improving U.S. economic growth and liquidity from the Federal Reserve.
In the last three years, strong market run-ups in the first quarter have led to pullbacks of between 10 to 20 percent during the first few weeks of the second quarter.
"It looks like the rally's gotten tired and we're due for a pullback for stocks. And while we may not see the huge pullback like in the past years, a smaller decline of about 5 to 10 percent is what we're expecting," said Jeff Kleintop, chief market strategist for LPL Financial. "But we'll see a bounce after that, so individual investors can use this market to their advantage and look to buy on the dips."
Some analysts point to slow earnings growth as a possible catalyst for the pullback.
Earnings growth expectations for the first quarter are at a modest 1.5 percent, according to the latest data from Thomson Reuters.
So far, a little over 100 companies on the S&P 500 have provided negative earnings guidance compared to 23 positive pre-announcements for the first-quarter. Still, earnings growth is forecast at 9.2 percent for the year.
"Earnings expectations have not risen as much as in prior years, which may limit the disappointment," wrote Kleintop. "It is too early to say whether [the earnings revision] indicator is flashing a warning sign."
" if investors are going to be nervous, Europe's going to be an excuse," said Thomas Lee, chief U.S. equity strategist at JPMorgan. "But at the end of the day, I don't think this is a big enough threat to say the bull market's over and global recession's starting because there's another financial crisis."
—By CNBC's JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)
Questions? Comments? Email us at marketinsider@cnbc.com
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