Why the stock market isn’t as forward-looking as investors might think when it comes to a recession

Investors think of the stock market as forward-looking, but valuations often price in an earnings recession only after “it is knocking on the door,” warns Lauren Goodwin, an economist and portfolio strategist at New York Life Investments.

U.S. earnings results typically serve as the last domino to fall in terms of economic data heading into a recession, Goodwin said in a Tuesday note to clients. She also said that while corporate margins have held up, revenues have been declining in most industries, particularly in the technology and consumer-discretionary sectors, which have benefited from the recent rally in stocks.

“The recent rally may have begun from reasonable valuations and low investor confidence, but it reflects a temporary increase in liquidity and a monetary policy pivot that, in our view, is not coming,” Goodwin said.

Colombia Últimas Noticias, Colombia Titulares

Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.

Diversity, equity, inclusion workers fret companies aren't hiring them anymore: 'Insane,' 'Pathetic'Diversity, equity and inclusion workers sounded off on Twitter over companies not hiring them to cut costs, arguing their jobs were necessary for workers and companies. My response to them.... They never should have hired them to begin with. Waste of money. 'Diversity, equity, inclusion' These are the ideas of losers, who create mediocre workforce and a weak nations. Promoting mediocrity in every field and dragging human race down.
Fuente: FoxNews - 🏆 9. / 87 Leer más »

Creation Equity plans Thunderbird Commerce Park industrial project in Scottsdale - Phoenix Business JournalThe new development is set to be located in a part of the Valley with the smallest industrial inventory and fewest amount of square feet under construction of all submarkets in the Phoenix metro in Q4 2022.
Fuente: phxbizjournal - 🏆 254. / 63 Leer más »