Here’s two facts that suggest they should be. One is that 500 US companies have now reported their earnings with 73% beating earning estimates. That looks bullish.
The U.S. Commerce Department’s Bureau of Economic Analysis just reported that the U.S. economy in the last quarter of 2009 grew at a 5.7 percent annual rate which was the highest growth rate since 2003. That looks bullish.
But behind these bullish numbers are two questions:
1. Where’s the revenues growth?
2. How sustainable is our economy?
Much of today’s financial results are being achieved through O&M cost-cutting, deferred capital investing and government stimulus. This is not the bullish momentum investors are seeking.
The Secret Green Sauce, profiles actual companies growing “green” revenues even in this soft recovery economy. These profiled companies have recognized that to grow revenues they must create a compelling “reason to buy” with their customers. They are growing revenues by selling real solutions to such issues as health, diet, in-door air quality, budget control, etc. These are “sustainability” issues that consumers are seeking to buy.
How large is this market? The key sustainability consumers are The Millennial Generation, Concerned Caregivers (their moms) and “Sustainable CEOs” (and those who report to them). These three market segments have a combined annual buying power of $10 trillion.
The answer to when will the stock market turn bullish is when business embraces the revenue growth opportunity of selling sustainability. Emerging financial research documents a 400 basis points stock valuation performance result for companies that are more sustainable compared to those that are less sustainable companies. There is a secret sauce for growing stock value and like the color of money, it is green!