http://money.cnn.com/2011/05/26/pf/bob_turner_growth.fortune/index.htm
That's what everybody's asking. So why is it?
I don't have the answer honestly. If there's anything, I would say it's like a digestive phase. They've had this extraordinary growth.
So there's a bit of a pause here. The iPad 2 is doing well. People are focused on the iPhone 5 coming in July or September or next year. So at some point, and I don't know when it's going to be, I think the stock will go from $350 to $450 just fairly quick. In a way it reprices. And the feeling is by 2013, they can earn $50 a share. At that point, they're going to have $100 per share in cash, and the stock should be $500.
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But I think there's going to be sustainable economic growth, both globally and in the U.S. Not extraordinary but certainly stable.
SS says - What is wrong with this guy?
Does he not look at Europe???
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Okay. But underpinning that is your expectation that the economy is moving forward and upward? The march continues?
Yeah, plus as the weak dollar benefits these companies -- I mean the reason that S&P 500 earnings are probably going to be $100 a share this year and potentially could be $110, $115 next year is because of the weak dollar. So everybody bemoans the weak dollar, of course, but you don't see a company like Caterpillar and Cummins and Ametek fussing too much about the weak dollar because it's the best thing that's ever happened to them.
Short of a really severe economic slowdown, corporate profit growth is going to continue to be quite good. So I think that's kind of the unappreciated story -- how resilient corporations have been and how strong their profit growth has been.
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SS says - weak dollar to stay weaker!!!!!!!! - Yes - one of the greatest crowded trades ever.
Some guys never learn.
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That's what everybody's asking. So why is it?
I don't have the answer honestly. If there's anything, I would say it's like a digestive phase. They've had this extraordinary growth.
So there's a bit of a pause here. The iPad 2 is doing well. People are focused on the iPhone 5 coming in July or September or next year. So at some point, and I don't know when it's going to be, I think the stock will go from $350 to $450 just fairly quick. In a way it reprices. And the feeling is by 2013, they can earn $50 a share. At that point, they're going to have $100 per share in cash, and the stock should be $500.
-------
But I think there's going to be sustainable economic growth, both globally and in the U.S. Not extraordinary but certainly stable.
SS says - What is wrong with this guy?
Does he not look at Europe???
----------
Okay. But underpinning that is your expectation that the economy is moving forward and upward? The march continues?
Yeah, plus as the weak dollar benefits these companies -- I mean the reason that S&P 500 earnings are probably going to be $100 a share this year and potentially could be $110, $115 next year is because of the weak dollar. So everybody bemoans the weak dollar, of course, but you don't see a company like Caterpillar and Cummins and Ametek fussing too much about the weak dollar because it's the best thing that's ever happened to them.
Short of a really severe economic slowdown, corporate profit growth is going to continue to be quite good. So I think that's kind of the unappreciated story -- how resilient corporations have been and how strong their profit growth has been.
-------
SS says - weak dollar to stay weaker!!!!!!!! - Yes - one of the greatest crowded trades ever.
Some guys never learn.
-------------
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