U.S. earnings recession fades but Wall Street is expensive

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 30 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 15%
  • Publisher: 92%

Ireland News News

Ireland Ireland Latest News,Ireland Ireland Headlines

For those investors with a multi-year horizon, Wall Street’s growth potential and appeal relative to Treasury debt may dim considerably if borrowing costs don’t return to recent historically low levels

A U.S. earnings recession that was consensus thinking only a few months ago has evaporated out of view which, on the face of it, should be a tailwind for Wall Street into next year.

This would be the worst quarter in three years but not part of a technical recession – first-quarter growth was a slender 0.1 per cent and third-quarter estimates are around 1 per cent. “2024 earnings estimates have held up pretty well, we’re at high levels now,” notes Howard Silverblatt, senior analyst at S&P Global. “You are paying a nice premium here. Hopefully it’s worth it.”

That’s the broad conclusion of a paper last year by Robeco’s head researcher David Blitz, who analyzed equity risk premia across a range of countries from data that goes back more than 120 years.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in İE

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock market today: Wall Street drifts ahead of updates on inflation, profitsStocks are drifting on Wall Street Monday ahead of a week with updates on where inflation and corporate profits are heading.
Source: CTVCalgary - 🏆 26. / 68 Read more »