Yahoo Finance: "A critical driver of bull markets has stalled"

By in
Yahoo Finance: "A critical driver of bull markets has stalled"

Excerpt from Yahoo Finance quoting DataTrek’s Nick Colas:

…. “With US equity multiples as high as they are (21.6x forward 12-month earnings) you do not want to see Wall Street analysts cutting their estimates, but that’s exactly what happened last week,” DataTrek Research co-founder Nicholas Colas observed in an email on Monday.

Colas shared the chart below from FactSet, which shows analysts’ forecasts for 2021 and 2022 S&P 500 earnings.

“You can see the dramatic estimate cuts from the Pandemic Recession (March – July 2020), then all the upward revisions thereafter,” he wrote. “You can even see where Tesla went into the 500 (that December dip). For stock market investors, a critical metric to watch is expectations for future earnings”….

Read the full article here on Yahoo Finance!