Record Profits

This is the title an article in the Sunday, November 13, 2011 Charlotte Observer. This article gives the profits for the companies that comprise the S&P 500 index. Next week Thursday is Thanksgiving and let me be one of the first to wish you Happy Thanksgiving, we have many things to be thankful for. Make sure to read the Thanksgiving facts at the bottom, some may surprise you.

Vanguard

After sputtering for months, the U.S. economy began to show some hopeful signs. Industrial output, retail sales, and a gauge of potential future economic activity all climbed substantially in October from September, while also significantly exceeding analysts' expectations. Consumer and producer prices declined. For the week ended November 18, the S&P 500 Index fell 3.8% to 1,215.65 (for a year-to-date total return—including price change plus dividends—of about –1.6%). The yield on the 10-year U.S. Treasury note fell 3 basis points to 2.01% (for a year-to-date drop of 129 basis points).

Record Profits. So What?

It is difficult to make long term investing decision based upon things that are one time events like the US Debt Committee progress. Ultimately, stock prices are related to the growth in corporate profits. So the question is how is the growth in corporate profits?

This article indicates that corporate profits are growing and doing fine. Here is the info:

* 3rd quarter profits of $23.78 per share this tops last quarter's record of $22.24/share.
* The 2nd quarter of 2007 had a profit of $21.88/share.
* Profits are rising because of an improving economy that is growing faster than the previous quarter.
* Even with these record profits the S&P 500 is now 24% below the October 9, 2007 high.
* Financial analysts expect profits to keep rising.
* Investor demand for stocks over the long term depends on corporate profits.

Bottom Line: I look forward to the noise quieting down so that stock prices can reflect improving corporate profits.

Fun Facts About Pilgrims

1) The Pilgrims moved to Holland before they came to the New World.
2) The Pilgrims left England because they wanted to practice their own religion, not the religion that the government wanted them to practice.
3) The Pilgrims ddecided to leave Holland, because they found they were losing their own traditions and their children were practicing Dutch traditions. It was sometimes difficult to practice two different traditions.
4) It took 64 days for the pilgrim ship Mayflower to cross the Atlantic.
5) The Pilgrims first spotted land at what is now known as Cape Cod, but kept sailing until they came to Plymouth.
6) Many Pilgrims died the first year because they ran out of food and got sick.
7) During March, the Indians introduced themselves to the Pilgrims and taught them how to use fish to fertilize corn and how to get sap from maple trees.
8) The Pilgrims first Thanksgiving celebration was in the middle of October. It lasted for three days.
9) There were 90 Indian braves and their chief at the first celebration.
10) The Indians brought five deer for the feast.
11) A Plymouth Pilgrim didn't just wear black and white clothes. Pilgrims also wore clothes that were colorful.
12) Women wore bonnets to keep their hair clean.
13) Pilgrims ate venison, which is deer meat, at the first celebration.
14) The first celebration was not called Thanksgiving. It was held because the Pilgrims wanted to thank the Indians for teaching them how to survive.