October 21, 2003


Improvement in Bottom Lines Pumping Up Investors' Hopes (JONATHAN FUERBRINGER, 10/21/03, NY Times)

After a long nightmare on Wall Street, the latest profit figures from corporate America have been the stuff of investors' dreams.

Corporate earnings are set to have their best quarter since the spring of 2000, with initial estimates of a 21 percent jump over last year's third quarter. Strong consumer spending, a weakening dollar and further cost- cutting all helped to improve the bottom line for companies that have already reported for the quarter, which ended Sept. 30.

One interesting aspect of investor willingness to hop back into the market so soon is that Democrat opposition to privatizing Social Security has over the past two years been predicated on how the bursting of the last bubble proved such a personal investment plan too risky. Folks seem instead to have a reasonably high level of faith that the market goes up over the long term.

Posted by Orrin Judd at October 21, 2003 8:57 AM
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