Throughout earnings season everyone's all of a sudden flippin' out over top line (revenues) vs payroll cuts, thus margin. Funny how over the last three months no one said "Boo" about such, but now are.
So lettuce check out the ratio between the two largest measures of both: Retail Sales & Employment.
The number everyone's clucking about these days is UNemployment, which is silly in regards to earnings.
Stocks rise & fall based upon expected earnings, of which employment is a factor, not the number of people whom are not working.
Employed people cost money/earnings.
Unemployed people cost earnings nothing.
Obviously increasing unemployment may drag on revenues, but as long as revenues & employment move in tandem so will earnings.
Revenues can drop, but if employment drops with it earnings remain stable.
Should revenues increase on flat employment earnings will increase, and that is the foundation & hope of the current stupid run.
I wanna see if by following the monthly Revenues to Employment ratio if we can get a feel for how Q3 EPS will turn out.
Fluctuations in the $USD will affect revenues.
