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It’s All About the Multiples
By Advisor Perspectives
Earnings are strong, markets less so. As Russ explains, investors are paying attention to valuations and the economy.
Despite unusually high expectations, companies are actually delivering on first quarter earnings. Roughly halfway through reporting season, 74% of companies reporting sales and 79% reporting earnings are beating expectations, both above the five-year average. Still, the market cannot get out of its own way. The S&P 500 Index remains nominally down year-to-date.
Why are investors ignoring strong earnings?
The simple answer is they’re not. Instead, the answer lies with stretched valuations and changing economic and financial market conditions.
Read more at Advisor Perspectives.
Photo: Dick Thomas Johnson