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On the subject of revenues and profits, of the 86% of the Standard and Poors 500 companies that have reported 2nd quarter results so far.  Despite a sizable beat rate with respect to earnings and revenues, profit growth for the quarter is tracking-3.5% and will mark a 5th consecutive quarter of year ago declines.  Earnings growth estimates for the 3rd quarter are already negative, and for all of 2016, earnings are expected to slip .3%.  No wonder valuations are steadily climbing despite an essentially flat market. Moving to revenues, and the picture looks a little better, with revenue growth tracking zero so far for the 2nd quarter.  That said, revenues look to fall on a year ago basis, data as per FactSet Research.

This is Caleb Lawrence Registered Investment Adviser Scotts Valley Drive and Willis Road in the Scotts Valley Plaza, Suite 202 or call me toll free at 888-RICH PIG / 888-742-4744.

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