Earnings results not moving the stock markets

Happy Friday folks!

This week has seen a string of positive earnings reports – and yes, revenue growth has been a part of the story. Yet, despite these strong results the stock markets have gone sideways, barely up, and very down. Hmm. I can assure you that this performance does not have to do with the dire situation in Haiti. No, this combination of solid earnings results with an unexcited stock market is generally a sign of: an overvalued stock market. I have been saying since mid-autumn that I felt the stock market was fairly valued, to slightly over-valued. It appears that other investors are starting to agree.

Jason