Does Stock Market Effect Company Profits?
How much effect do you think the run up in the market benefited the bottom line of the publicly traded companies?
You notice a lot of profit even with lower sales, a lot is from down sizing and cutting jobs, eliminating expansion, reduced advertising and other expenses used for growth; but what about the market going from 6500 to 10,700 in 9 months?
How does that affect their profit?
Look at Mercury Insurance, their sales are down but they made a lot in their investments. They break this out in their report, but I’m wonder if others blend it in to their profits.
If the investments are contributing to the profits then what will happen now that the dow has stopped its climb?
How long before the reports come out that reflect a flat or negative return on investments from this last 6 months?