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In monopolies we love

July 15, 2009

The market is soaring today largely because chip-maker Intel reported better than expected earnings and Goldman Sachs bested even the most optimistic earnings predictions. But is it any shock that these two defacto monopolies would produce outsized earnings.

Even in a crummy economic environment, companies that dominate their sectors can do well. And that appears to be the case with Intel and Goldman. Of course, Goldman is getting a big hand from Uncle Sam. But that’s the subject of another blog post.

I suppose the market dominance demonstrated by Intel and Goldman is good for the shareholders of those companies. But investors shouldn’t read anything broader about the health of the economy from each company’s respective earnings announcements.

Comments

Goldman should settle its AIG obligations and rehire some of the 6000 people it fired in the last year before paying bonuses. there is a related post at http://iamsoannoyed.com/?page_id=588

Posted by carly | Report as abusive
 

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