Mark Ungewitter is a Senior Vice President
and Investment Officer at Charter Trust Company.
In this section you will find articles that look
at technical aspects of the market and the economy.
Summary Commodity crashes are typically associated with severe earnings contractions. Current expectations for flat calendar-year operating results seem overly optimistic in the present environment. A cautious outlook toward second-half earnings is advised. Will collapsing commodity prices clobber U.S. earnings? In six out of seven cases since 1970, commodity crashes exceeding 20% year-over-year have corresponded with earnings contractions exceeding 10% year-over-year. The lone exception occurred in 1998 when earnings decelerated to zero growth without actually contracting. Given this [...]