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Earnings revisions at five-year high

Posted on Thursday, October 22, 2009 at 03:03PM by Registered CommenterSimon Ward | CommentsPost a Comment

More equity analysts upgraded their forecasts for company earnings in October, suggesting a further rise in economic momentum. The world earnings revisions ratio – i.e. upgrades minus downgrades divided by the total number of estimates – reached its highest level since May 2004. The ratio is closely correlated with business surveys, which may show further improvement this month – see chart.

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