Don’t Look Now But. . .

Further to our recent posts here and here on the weakness of the Obama economy, here are two stories of note from this morning:

Profit Slump for S&P 500 Heads for a Sixth Straight Quarter

Companies in the S&P 500 are now expected to report an earnings decline for the sixth consecutive quarter in the coming weeks, according to analysts polled by FactSet. That slump would be the longest since FactSet began tracking the data in 2008.

The prolonged contraction has raised questions about how far stocks can rise without corresponding strengthening in corporate earnings.

I notice the Dow is off about 100 at the opening this morning. Meanwhile, this:

U.S. Bond Market’s Biggest Buyers Are Selling Like Never Before

Holders like China and Japan have culled their stakes in Treasuries for three consecutive quarters, the most sustained pullback on record, based on the Federal Reserve’s official custodial holdings. The decline has accelerated in the past three months, coinciding with the recent backup in U.S. bond yields. . .

. . .But perhaps more important are the consequences for America’s finances. With the U.S. facing deficits that are poised to swell the public debt burden by $10 trillion over the next decade, foreign demand will be crucial in keeping a lid on borrowing costs, especially as the Fed continues to suggest higher interest rates are on the horizon.

I’m sure it’s nothing to be worried about.

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