Subscribe to new posts:

Contact

Send yor questions, tips and news as well as advertising to:

Corporate

US Corporate Earnings Concentration

Guest post  via Marc to Market.

This Great Graphic was onBarry Ritholtz’s Big Picture blog.  It originally was from Morgan Stanley’s Adam Parker.   It notes that nearly 90% of this year’s earnings growth of the S&P 500 companies can be traced to 2% or 10 companies.
There seems to be two industries represented and Big Oil is not one of them.  It is finance with 6 of the top 10, but if you allow the inclusion of GE (due to GE Finance), finance accounts for 70%.  Technology is the other industry, led by Apple, IBM and Western Digital.
It is even more concentrated than the chart suggests.  Four companies–three financial services (AIG, Goldman and Bank of America) and one technology firm (Apple) provided over half of the earnings growth of the S&P 500.

100 % Bearish

IN case you missed Biderman on Fox Business, here is a reminder video worth watching.

Biderman recently went from 50% bearish to 100% bearish….

Video below.

Continue reading

Corporate Income Taxes are Horribly Destructive

Biderman on the US corporate taxes.

The Unites States now has the highest corporate income tax globally. Congratulations. Corporate income tax is the worst, most capital and value destroying tax of all types of taxation. And we are the leaders.

To understand why corporate income tax destroys capital over the long term; you need to first to understand that all there is in a corporation are people; nothing other then people managing and working at growing a business. A corporation is just the name of a group of people working together to provide goods and services for sale. This might be a shock to some, but all corporate employees pay income taxes on whatever they make. Similarly shareholders pay taxes on the income they get from a business via distributions. Video below.

Continue reading