Cliggott says earnings growth isn’t as spectacular as the headlines might lead you to believe because of a slowing employment picture.
He expects a housing slowdown to drag down employment and consequently the economy. Consequently, Cligott believes over the next 3-5 years investors will be lucky to see corporate earnings come in at 2%-4% per year. He recommends investing abroad.
Eric Bolling doesn’t agree. He thinks the world is growing so rapidly that strength in other economies will more than off-set domestic weakness.
Jeff Macke adds growth on the corporate earnings side is robust.
Dylan Ratigan says the bottom line here is, Doug Cliggott is looking for a “tell” in the labor market. And only time will tell if he’s right.
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Trader disclosure: On May 14, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Strazzini Owns (HLT), (MER);Bolling Owns (ICE), (NMX), (XOM), Gold, Silver, Coffee, Sugar Bolling Is Short S&P Futures Bolling Is Short Nasdaq Futures:
Cliggott & Clients Of Dover Management Own UltraShort S&P 500 ProShares (SDS)
Cliggott & Clients Of Dover Management Own UltraShort Financials ProShares (SKF)