Business Insider: “An upside surprise for stocks is brewing as historical trends show the S&P 500 is on track to buck analysts’ gloomy forecasts, DataTrek says”By admin_45 in IN THE NEWS
Excerpt from Business Insider quoting DataTrek co-founder Nick Colas:
.... "Would companies be hiring and advertising open positions as aggressively as the US labor market data shows if they were expecting a 7% sequential drop in profitability? It seems unlikely," DataTrek co-founder Nicholas Colas said.
And the US corporate bond market isn't signaling any stresses that would suggest a deterioration in earnings power, with low yields suggesting that cash flows should remain high and stable for years to come.
"In +30 years of covering US equity markets, we can't think of a time when analysts have so seriously underestimated US corporate earnings power in any given year," Colas said"....
Read the full article here on Business Insider!