The Wall Street chorus may be bearish, but this strategist points out stocks do better when earnings fall

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 39 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 97%

Malaysia News News

Malaysia Malaysia Latest News,Malaysia Malaysia Headlines

Markets are "forward-discounting mechanisms engaged in an ongoing operation," and investors best remember that, says strategist Seth Golden.

According to some analysts, equities just aren’t worth the risk right now. If this chart from a recent JPMorgan client survey is any indication, investors may be thinking the same:

What investors are forgetting, and maybe Wall Street too is that “markets are forward-discounting mechanisms engaged in an ongoing operation,” said Golden, in a blog post. He notes how earnings per share rose in 2018 and 2022, yet the market fell in both years, which likely means markets were forward discounting the chance of earnings per share slowdowns in 2019/2023. His chart below shows how markets have been higher 77% of the time since 1930, despite weaker earnings:

While his team is more focused on the S&P 500’s performance, Golden said they are watching out for weakness to add exposure to several big name stocks, including Amazon.com AMZN , PayPal PYPL , Boeing BA , Visa V , JPMorgan JPM and the healthcare Select Sector SPDR XLV to name a few.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Castrated choristers provide a bullish return as grown men in terms of the higher notes they are capable of generating.

After the stocks fell due to recession, it is expected that the stocks would rise again

BidenIsAFailure

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:

 /  🏆 3. in MY

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

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

Stock Market Today: Seagen, Union Pacific Shares Jump PremarketStock futures rose, pointing to a modest recovery after indexes logged their worst week of the year. Follow the latest markets updates: BULL💩 STOCKS TANKED like the 2nd GRET D£PRESSION IT IS. BEDRIDDEN BIDEN has T0PPLED the STOCK MARKET. LONG BEFORE NOW. 🦊🐶💋
Source: WSJ - 🏆 98. / 63 Read more »

Wall Street’s most overbought stocks include PepsiCo and this little-known insurance companyInvestors should consider easing exposure to names that are still overbought. They can gauge this with the relative strength index. If you want to learn about different types of charts in trading, see this trading charts technicalAnalysis
Source: CNBC - 🏆 12. / 72 Read more »