By John Persinos
"A rising tide lifts all boats." You've probably heard that phrase many times. First said by President John F. Kennedy (courtesy of his eloquent speechwriter Ted Sorensen), the words became a mantra among the free market libertarians (aka, supply siders) of the Reagan era.
During the stock market's rally since the spring of 2020, that rising tide had been dovish Federal Reserve policy, historically low interest rates, and unprecedented fiscal stimulus. Now the tiding is receding, which brings to mind another saying, uttered by Warren Buffett: "Only when the tide goes out do you discover who's been swimming naked."
During this earnings season, we've been discovering who's swimming naked. Earnings misses from Alphabet (NSDQ: GOOGL), Amazon (NSDQ: AMZN), and Boeing (NYSE: BA) have revealed slumping demand and supply chain woes among these blue-chips that bode poorly for their future quarters. It's not just missing expectations in the most recent quarter; their projected outlooks have been grim as well.
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