Excerpts from Bloomberg Opinion quoting DataTrek’s Nick Colas:
…. “In a declining interest rate environment, flat earnings are good enough to keep stocks moving higher,” DataTrek Research co-founder Nicholas Colas wrote in a research note to clients. “Yes, it would be nice if we didn’t need to rely on global central banks to see rising stock prices. But this is the world we have”….
…. “And recent history shows that stagnant earnings are no impediment to big stock gains. The S&P 500 returned 28% between 2014 and 2016 despite earnings stalling around $119 a share, according to DataTrek’s Colas. But that was largely due to low bond yields that averaged around 1.40% for the period”….
Read the full article here in Bloomberg Opinion!