Price earnings ratios have been climbing to all time levels while inflation also continues to climb. Add in, the logistical problems most firms are experiencing and it's looking like earnings season could be rough, really rough.
Robust comparisons to last year's quarter may not be all that investors are hoping to see. Yes, we are likely coming out of the COVID debacle, but the logistical problems hampered by everything coming to a grinding halt doesn't look like they will easily resolve.
Many of the companies I own have seen this year's revenue and net income metrics through two quarters easily outpace last year's three or four quarters. Can it keep up? I doubt most will, except for a select few.
Remember, the story of Jack and the Magic Beans is only a fairy tale. Nothing grows forever to the sky, earnings included!
Be smart, be well-read, be aware and be successful.
