Stocks may be rallying to records, but the earnings outlook is darkening

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Underneath the record-setting rally lies a worrisome earnings trend that is 'uncommon and rarely good' for the stock market, UBS warned.

The S&P 500 forward earnings year-over-year growth has slowed to less than 1% from a cycle peak of 23% just 14 months ago, UBS says.

"There is no debate on S&P 500 forward earnings: a contraction appears imminent," says UBS equity strategist Francois Trahan. "An actual contraction in forward earnings usually spells a difficult backdrop for the overall equity market." S&P 500 companies now expect to grow their earnings by less than 1% year-over-year, compared to a 23% growth rate just 14 months ago, the bank pointed out.

 

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has been pushing this “imminent recession” theory for two years. And what direction do earnings and the markets keep going? If you’ve been shorting the markets based upon CNBC’s stories and advice, congrats, you’re broke.

The rally is being driven by greedy traders propping up the system for its last gasp before a massive crash.

the market doesn’t trade on earnings amd hasn’t for the last two years!!! all that matters is interest rates and trade, DUH!

Is there a new category? Not as bad as Liberals wanted.

Everyone loves to hate the rich. Now the rich are super richer. The gap between the top and bottom will cause a democrat to win. The greed of wall street will come home to roost.

BTFD

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