The earnings may have been padded but the differential was the same (since the pad was there before) so there was true growth (unless you are telling me that there were growing the pad number quarter after quarter while true earnings were going down - which I'm sorry to say will be not true :).
The fact remains that IMO the bottom in the stock market will be reached 2 quarters before the earnings will bottom. So IMO, I think the earnings revenues could still be going down for 2 more quarters after the bottom is reached as long as from the 3rd quarter on they show growth in sales and earnings.
In other words, stocks will bottom 6 months before earnings and sales bottom. Now you be my guess and tell me when that will be.
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