Prepare for Worst Earnings Season Since 2009

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Analysts are predicting that the upcoming third-quarter earnings season could be the worst since 2009.

So what does that mean for your investments?

Money Morning's Chief Investment Strategist Keith Fitz-Gerald appeared on Fox Business' "Varney & Co." program to answer what potentially disastrous earnings could do to markets.

"Well, you know it should mean that the stock market is going to come down but what I think it really means is this, and there's a far bigger question here," Fitz-Gerald explains. "If the analysts are right and the earnings stink, then we're going to find out once and for all whether this market is actually all about Ben Bernanke and Club Fed."

But Keith doesn't think this is the time to run away.

"You have to be in this market because Ben Bernanke wants you to be in this market. They're trying to induce inflation, that inflation theoretically trickles into the stock market and you can't afford to sit this one out," said Keith.

Watch the accompanying video to hear which sectors Keith likes and what investments to stay away from.

Join the conversation. Click here to jump to comments…

  1. Robert Rennker | October 9, 2012

    Who owns the 16 + trillion dollars of our debt. What happens if the dollar is devalued?

    • Harry Barnes | October 10, 2012

      Robert, we are essentially borrowing most of it from the future revenues yet to be collected as well as social security coffers. The rest (about5 trillion from china and 2 trillion from japan and the rest from several places. What it means is the dollar is getting weaker and will not purchase as much as it did the month before or even the weeek before. If the politicians do not quit spending money then everyone will be paying more than they can afford to live. The politicians don't care. They have their own money and will not think a moment about whether we survive or not. This is all about the beautiful people who have the money. Not about the little people.

  2. HMH | October 14, 2012

    The healthiest Horse in the glue factory,gotta love it.
    The U.S is bankrupt,it cannot solve its' current problems without some dramatic action,so get ready for the S.A T(Save America Tax),a consumption tax that already exists in most major economies.
    The rationalisation is removal of manafacturing taxes to make America more competitive.
    Oil, Gold, Fresh Water,Agriculture,Minerals,World's Best Banking system,Universal Health Care,one Year Maternity/Paternity,Gun Control,small and shrinking deficit,guess where and would you want to own their currency.???????

  3. H. Craig Bradley | October 27, 2012

    PUNDITREE IS FREE, BUT INVESTMENT ADVICE COSTS DOE-REY-ME.

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