MONDAY MAY 24, 2010

Something Positive

The Greek/Euro crisis has filled the airwaves over the last few weeks and the markets have corrected fiercely.  This morning, Europe still dominates the headlines.  Lost among all the angst is the fabulous earnings reports from Corporate America.  U.S. companies are highly profitable, with great cash flow and large cash reserves on the balance sheet that should help them weather this storm well.  In addition, the dramatic drop in energy prices will improve their productivity levels and help earnings even further.

There is no doubt that the slowing European economy will eventually impact earnings, but that will occur over the next two quarters, not immediately.  Hopefully, if Europe settles down, there may be considerable upside to the U.S. stocks when people return their attention to the earnings performance.

POSTED AT 1899-12-30 11:37:00.0

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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