The Numbers Look Great… As They Always Do Before A Crash

Friday, November 18, 2016
By Paul Martin

by John Mauldin via MauldinEconomics.com,
ZeroHedge.com
Nov 18, 2016

It’s quarterly report time for US stocks. If you just casually glance at the earnings news, you might think companies are having a great year. Many are beating expectations and reporting impressive revenues and profits.

The markets reward companies for meeting expectations (as we shall see below). But the reality is that the S&P 500 is on track for a sixth straight drop in year-over-year earnings.

How do companies keep continuing to beat expectations when earnings are falling?

Expectations take a dive
Equity analysts are a big part of the problem.
Their job should be getting those estimates right. They should not just take what are clearly suspect numbers from companies and plug them into their spreadsheets.

The Rest…HERE

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