View from the Observation Deck

1. Consider this post another attempt to reach out to those investors unwilling to commit capital to the equities markets.
2. We acknowledge the fact that many investors are disenchanted with stocks after experiencing two bad bear markets in less than a decade, but stock prices have been rebounding since 3/9/09.
3. Stock prices are recovering because corporate earnings are rising (see green bars in chart). The $96.44 earned in 2011 was a record high for the index.
4. The problem continues to be that stock prices are rising at a slower pace than earnings (white bars). So P/Es are falling.
5. The opportunity for investors to purchase quality stocks with earnings estimates trending higher and P/Es trending lower is rare, in our opinion.
6. While many governments around the globe have saddled themselves with unmanageable debt loads, we believe Corporate America has become more fiscally responsible.