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Healthcare wont go down, no matter whatThere are a couple of core trends which stayed negative, to say the least: - Housing market remains depressed (both new and resale) - Oil prices continue maddening upward trend ($125+/barrel as of last) Between them, those two have enough power to pull down consumer spending for quite some time...and considering that consumer spending accounts for 2/3rds of the economy, we should see sustained slowdown in most sectors as a result. It is just that the market focus will shift from Financials to Manufacturing and Service sectors. Depressed consumer spending would reduce demand for goods and services and this would reflect in earnings for these sectors over the next 2 quarters. What we have seen in Q1 earnings deceleration is probably just the start - in fact Q1 surprised many since probably the lag effect has not started kicking in to reflect in actual earnings for these sectors. Except for Healthcare |
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