Shilling’s concerned about lower corporate earnings next year, which have the potential to drag on stock prices. His worries are three-fold: A global recession will occur, hurting revenue and by extension earnings; profit margins are about as good as they can get with companies having already implemented extensive cost-cutting; a strong dollar will weigh on U.S. corporations’ foreign profits and overseas operating expenses.
Shilling continues to remain bearish on the housing market because, as he sees it, the market has at least one major factor working against it.
Cory’s Chart Corner
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