by Mike Meyer
Daily Pfennig
Last week, the S&P 500 Index and the NASDAQ both hit all-time highs. And, a lot of investors are scratching their heads as to why.
After all, as readers of the Daily Pfennig® newsletter are aware, corporate earnings haven’t been that great. In the first quarter of 2016, year-over-year earnings were actually down 6.7%. So far in the second quarter, earnings are down 3.5% compared to last year’s second quarter. So, what gives?
The economy isn’t booming. As we pointed out last week, gross domestic product (GDP) growth in the second quarter was a big disappointment as the U.S. economy only grew 1.2%, which was well below Wall Street expectations of 2.6%.