Estimates are high and investors are enthusiastic about what could be the best year-over-year earnings growth in seven years. If expectations are met, it could confirm investor sentiment for the tax cuts and higher profits this year. But the market could be ripe for a correction just as investor sentiment peaks. The S&P 500 is trading at 16.5 times earnings expected over the next year, a premium of 15.4% over the 10-year average of 14.3 times. #-ad_banner-#Stocks have been skittish all year, dropping more than 10% in February from their peak. The market has already seen three times the number… Read More
Estimates are high and investors are enthusiastic about what could be the best year-over-year earnings growth in seven years. If expectations are met, it could confirm investor sentiment for the tax cuts and higher profits this year. But the market could be ripe for a correction just as investor sentiment peaks. The S&P 500 is trading at 16.5 times earnings expected over the next year, a premium of 15.4% over the 10-year average of 14.3 times. #-ad_banner-#Stocks have been skittish all year, dropping more than 10% in February from their peak. The market has already seen three times the number of days trading higher or lower by 1% or more than all of 2017. This dichotomy means investors need to look deeper into the numbers to make sure their sector positioning and individual picks are ready for what will likely be a very volatile earnings season. Earnings Season Takes Center Stage The trickle in first quarter earnings becomes a deluge this week with bellwether names like Bank of America (NYSE: BAC) and Procter & Gamble (NYSE: PG). More than 1,200 companies are expected to report profits for the first three months of the year this week, an increase of… Read More