Corporate profits will likely stage the fastest-ever recovery in 2021 as companies gear up for the reopening of the US economy, according to a Monday note from DataTrek Research.
Here are the two reasons why corporate profits are set for a strong rebound in 2021, according to DataTrek. Despite the ongoing COVID-19 pandemic, S&P 500 profits will likely set a record in 2021, staging the fastest-ever recovery since at least the 1980s, according to a Monday note from DataTrek Research.
Following the dot-com bubble burst of 2000, it wasn't until the fourth quarter of 2003 that corporate profits reached their record set in early 2000. And after the Great Financial Crisis, it took the S&P 500 4 years to recover all of its earnings power.
"The only time you can pencil in 14 points of leverage is very early in an economic cycle," Colas highlighted.
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