FYI: When corporate profits are on the upswing, as they seem to be for the first time in more than a year, investors usually get excited. These are not usual times.
The reaction has been more "phew" than "hooray" for many fund managers this earnings reporting season, even with the Standard & Poor's 500 index on pace to report its first quarter of profit growth since the spring of 2015. The subdued reaction is the result of how expensive stocks have become. Earnings need to rise even faster than they are now to justify the market's lofty prices.
Regards,
Ted
http://bigstory.ap.org/article/7dcac51169c4424ead28635cd49d9dbb/corporate-profits-are-and-investors-exhale-bit
