Lowering the bar for earnings season
Companies are quickly slashing their earnings forecasts for the second quarter as businesses grapple with a stronger dollar, lower oil prices, higher input costs and rising uncertainty over trade and global growth, according to Bloomberg. While estimates are normally revised lower ahead of the earnings season so companies can beat expectations, the speed of recent downgrades has been notable: analysts have reduced forecasts at the fastest pace in nearly three years, and over 80% of the S&P 500 companies changing their earnings forecasts have made them lower.
Freelance Writer at Volley Goodman
Many of you wrongly believe that since earnings are high now the stock market actually should be as high as it is.? It is really true that every generation must relearn from the same mistakes. ALWAYS the price of any stock is based on FUTURE earnings. When prices in the stock market are at record highs you should be selling not buying like we see today. Better yet go back and learn from the strange popular delusions and the madness of crowds in every previous generation.