Monday, March 29, 2010

Why do you think that us employment number is not improving even when share price and earning are improving?

For me I think it is because of this few reason:-
- Only the big companies are having better earnings and this is done through productivity improvement. This will reduce the cost but will not grow revenue.
- In 2008 and 2009 allot of company has done restructuring, this is one time cost. In 2010 companies will not have this cost and will have better earning comparison versus prior year
- Big company consolidate their financials from all around the world. 3 world company like China, India, SEA and Latin America is growing at faster rate then US – this mean all the revenue growth is coming outside of US

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