Earnings this year may end up flat and that's a problem for investors lifting market to a record

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Earnings estimates are essentially 'flattish' for 2019 compared to 2018. This puts stock investors in a difficult position.

This puts equity investors in a difficult position because it's hard to justify stocks at a record high when there is very little earnings growth expected.

"It's tough to justify a high multiple when the global economy is slowing down," UBS' Art Cashin said. "Flattish earnings may not be good enough."NEW YORK, NY - APRIL 24: Traders and financial professionals work on the floor of the New York Stock Exchange at the opening bell, April 24, 2019 in New York City. U.S. stocks started the trading day mixed, following Tuesday's closing record highs for the S&P 500 and Nasdaq.

First, address trade and tariffs. The hope is that the Trump-Xi meeting this weekend will "reset" relations, the existing tariffs will remain in place while the trade talks continue, but that no new tariffs will be put on.No earnings recession is expected this year , nor is one projected for 2020. Buybacks continue at a strong pace and are providing support to earnings and stock prices, particularly in technology.

Here's the bad news: Earnings estimates are essentially "flattish" for 2019 compared to 2018. This puts stock investors in a difficult position because it's hard to justify equities at a record high when there is very little earnings growth expected.

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