NVDL: It's a done deal. The global environment will worsen for most people this year, so sorry to say, "happy new year' is a bit of a hollow sentiment. Even so, we can still be happy and productive even if there is a contracting train wreck around us. It means we need to live more rationally and logically, and within our means. It means a return to discipline. I advocate exercise as a great way to train the body and the mind, and to stay focussed on what's important and meaningful.
"It's going to be ugly," said Tom Higgins, chief economist at Payden & Rygel in Los Angeles. "We're certainly not through the thick of it...I think you're going to see a horrible earnings season."
"Analysts have been way too optimistic all the way up to this point," he adds. "After this quarter you may start to see where they'll be playing catch-up to the downside...and maybe we'll see more rational expectations for earnings. Right now I think we have more downside than upside on earnings."
Here's a snapshot of the warnings so far:
Media conglomerate Time Warner (NYSE:TWX - News) said Wednesday it expects to record a charge of about $25 billion in goodwill writedowns, leading to a loss in the fourth quarter. Microchip maker Intel (NasdaqGS:INTC - News) said its fourth-quarter revenue was likely worse than expected due to weaker global demand for personal computers. The company said its quarterly revenue was likely about $8.2 billion, down 23 percent from a year earlier. |
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