zt from pro:
Warnings of a Global Slowdown
FedEx is considered one of the better economic bellwethers. So investors pay close attention whenever they announce earnings. That was the case Tuesday morning when they beat estimates, but lowered guidance once again for the future. That came along with a lowering of their worldwide and US economic forecasts.
I'm not going to pretend that this is good news. But it is definitely more about the slowing of world growth and not really a US centric problem.
Note their estimates still call for Muddle Through Growth in the States. This will keep earnings aloft for Corporate America. And that will keep stocks attractive versus the "island of misfit toys" which is the rest of our current investment options (cash, bonds, gold and real estate).
So I am not going to get scared off the scent of stock ownership, even though there is a good case for a mild pullback at this time.
Read: Buy on the dips. |