October 21, 2010 Keith is quoted in The Buzz by Paul R. La Monica of CNN Money
If companies are finally getting more of a lift from real sales, it could be a sign that things are slowly but surely turning around. Of course, it’s not that simple though.
Keith Springer, president of Springer Financial Advisors in Sacramento, Calif., noted that it’s not just an increase in demand that’s helping to boost sales and profits for large companies.
Springer said companies with strong balance sheets have been taking advantage of their healthy cash positions to make acquisitions that can further boost growth prospects.
“Big companies are picking up larger pieces of the market,” Springer said. “The rich are getting richer. That’s going to continue.”
But Springer added that as long as the U.S. economy remains tepid, companies are unlikely to hire more workers. Many have already proven that they can earn big profits without needing to hire back staff.
“Earnings are going to be good and you will probably see the market continue to rally,” he said. “But it’s still going to be a jobless recovery.”