Randolph Duke: Money isn't everything, Mortimer.
Mortimer Duke: Oh, grow up.
Randolph Duke: Mother always said you were greedy.
Mortimer Duke: She meant it as a compliment.
Posted on 06/13/2008 12:50:46 PM PDT by Berlin_Freeper
Surging oil prices have often sent stock markets tumbling this year when, according to one view, investors should embrace rising energy costs because they boost the bottom line of many large-cap U.S. companies.
The energy sector is now the largest earnings contributor to the Standard & Poor's 500 Index .SPX, Wall Street's benchmark for corporate America's profitability, said David Bianco, head of U.S. equity strategy at investment bank UBS in New York.
Many investors see the rise in crude prices as a negative because of its potential impact on economic growth and the wallets of American consumers. That view, however, is mistaken because consumer discretionary spending only accounts for 15 percent of S&P 500 earnings, he said.
"We believe that high oil prices are a net positive to S&P earnings," Bianco told the Reuters Investment Outlook Summit in New York this week. "We are of high conviction that very high oil prices are more 'weatherable' for, not just the earnings but the market, than very low oil prices," he said.
(Excerpt) Read more at reuters.com ...
File this under 'P' for Peeing on Dumb ol' Joe Sixpack While Telling Him Its Raining.
Ha! Don’t you worry now, America, President Obama will make sure that rising gas prices benefit NO one when Congresss enacts their Windfall Profits Tax on oil companies. Then, it’ll be a “lose-lose” situation all the way down the line.
Randolph Duke: Money isn't everything, Mortimer.
Mortimer Duke: Oh, grow up.
Randolph Duke: Mother always said you were greedy.
Mortimer Duke: She meant it as a compliment.
Guess I should just chalk up the $4800 I’ll pay for heat this year up to “the spirit of giving”.
I’d like to see this clown explain how high oil prices are good for the average homeowner come winter.
There are going to be a lot of seriously hurt families when the heating gas and oil bills come do.
Oh sure, so Exxon, who is selling their retail gas stations because they are unprofitable, doesn’t know its own business.
Uh huh.
“..investors should embrace rising energy costs because they boost the bottom line of many large-cap U.S. companies.”
What a shameful statement to make. I am a successful investor, but I fully realize that I do not represent all Americans. There are many of my fellow citizens who suffer greatly because of rising energy prices. I welcome the day when America decides to utilize its abundant natural resources and the resulting lowering of energy costs.
It’s this kind of pigheaded, elitist statement that lets the Dims get away with corporation bashing to benefit their socialist agenda.
And the destroy the bottom lines of many small cap, and large cap companies, the airlines being a prime example. Plus destroy the budgets of many families, most of them investors too.
Who the heck is this David Bianco anyways? Some character from Alice in Wonderland?
And the destroy the bottom lines of many small cap, and large cap companies, the airlines being a prime example. Plus destroy the budgets of many families, most of them investors too.
Who the heck is this David Bianco anyways? Some character from Alice in Wonderland?
http://www.ubs.com/1/e/media_overview/media_americas/search1/search10?newsId=58938
July 26, 2002UBS Warburg Expands Valuation and Accounting Research Group; Names David Bianco Head of U.S. Team
UBS Warburg today announced an expansion of its US Valuation and Accounting Research Team. As part of the announcement the firm said that David Bianco, CFA, has joined UBS Warburg as head of the US Valuation and Accounting Research group reporting to Stephen Cooper, global head of Valuation and Accounting Research and Tim Baker, associate head, US Equity Research. Mr. Bianco joins a global team of eight people and a US team that includes Pinto Suri, who covers financial institutions; Austin Burkett, CFA, healthcare, and Omotayo Okusnya, Telecommunications, Media and Technology. Zhen Deng, PhD, also of the US group, focuses on accounting research and support.
„We are delighted that David has joined UBS Warburg and that he will lead a talented team of Pinto, Austin, Omotayo and Zhen to support clients in this business critical area,” said Cooper. „In addition to working directly with clients, David and his team will play a key role in supporting analysts in the development of their research in regards to valuation and accounting as well as create independent accounting and valuation research reports,” added Baker.
Recent examples where the US Valuation and Accounting Research group have supported the global equity research product with in-depth analysis of accounting issues include: „General Motors: Operations Strong; Pension Problems Weigh Heavy," „Compaq: Painting a House That is on Fire,” „Can You Trust the Numbers?," and „Goodwill in Equity Analysis.”
Mr. Bianco joins UBS Warburg from Deutsche Bank where he was the Chief US Quantitative Strategist. Prior to that, he was a food analyst at Credit Suisse First Boston. While at CSFB, he was a member of its EVA/Valuation team. Mr. Bianco is a graduate of the Wharton School of Business and is a chartered financial analyst.
UBS Warburg is a business group of UBS AG (NYSE: UBS), one of the largest financial services firms in the world with 70,000 employees in more than 40 countries. UBS Warburg is a leader in equities, corporate finance, M&A advisory and financing, financial structuring, fixed income issuance and trading, foreign exchange, derivatives and risk management. UBS Warburg is one of four business groups of UBS AG along with UBS PaineWebber, UBS Global Asset Management and UBS Wealth Management & Business Banking.
If you like $4/gal, Thank Congress.
Pray for W and Our Troops
Investors fail to understand that there is a difference between the economy and corporate earnings, or as Bianco likes to say, growth in gross domestic product is not the same as S&P earnings growth.
"People think about the consumer all the time when it comes to the U.S. economy," Bianco said. "Their perception is the consumer is stretched and consumer spending will weaken with these high oil prices. Yet they don't appreciate that high commodity prices are actually very good for the S&P."
Talk about a self-centered, heartless son of a bit##...
Well, if there was any doubt that speculation is driving a lot of the spike in oil prices, I think we have the answer in Mr. Bianco(and the people who agree with his financial philosophy).
There really is no argument anywhere in the article to go with the proclamation. It’s crap.
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