TUESDAY MARCH 30, 2010

Slow and Steady

The market is climbing its wall of worry while the economy continues its slow and steady improvement.  recent economic statistics on consumer confidence, consumer spending, housing prices and job optimism were all healthy for the markets.  In general, the statisics point to a slow and steady economic recovery.

Importantly, the first quarter is coming to an end and the earnings season will be upon us in 12 days.  The outlook for corporate earnings is strong.  Estimates call for earnings growth of 37% or more!  Pretty impressive!  Perhaps more importantly, revenue growth is expected for the second consecutive quarter and is estimated to push 10%.  Strong, consistent revenue growth has the potential to fuel further momentum in the market.  Also, with interest rates edging up, a strong earnings season may begin to attract some of the money that continues to flow into the fixed income markets.  However, on a cautionary note, the market is up 1000 points in the last seven weeks, so much of the good news is built into the market.  Anything short of a good earnings season could result in a correction. 

POSTED AT 1899-12-30 14:54:00.0

KEN ENTENMANN, CFA
SENIOR VICE PRESIDENT AND
THE DIRECTOR OF INVESTMENT MANAGEMENT SERVICES

Ken is a Senior Vice President and the Director of the Trust and Investment Services at Alliance Bank, N.A. He has 23 years of investment experience and oversees the management of assets totaling $1 billion. He holds a B.S. in Applied Economics and Business Management from Cornell University and an M.B.A. from the William E. Simon Graduate School of Business Administration at the University of Rochester. He has also earned his Chartered Financial Analyst designation. He is a member of the Executive Committee of the Trust Division of the New York Banker's Association. He is also a director of the Central New York Community Foundation.

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