Analyst forecasts indicate a potential for Ibex 35 profits to rise by nine percent during 2012. None of the companies on the Spanish stock index will incur losses, yet some analysts contend that several financial institutions could be forced to file losses as they allocate funds to clean up their balance sheets.
Still, we must remember that these corporate results are coming back from really low levels seen recently, that they are based on spending cutbacks that could damage employment in turn, and that they could become the best bait for luring in necessary investment.
Further, there is a clear risk that as 2012 and the sovereign debt crisis progress, these estimations will worsen while financing becomes scarcer yet and Spain endures more spending cutbacks.
