As David Rosenberg from Gluskin Sheff tweeted this morning:
The earnings recession has started. At the end of Sept, the consensus was +6.7% for YoY EPS. By end-2018, that estimate was down to +3.3%. And now -0.8%, with six of the eleven sectors in negative terrain.
— David Rosenberg (@EconguyRosie) February 11, 2019
It’s the economy stupid! I think by the time the stock market realizes why the Fed decided to hit the pause button, it may be too late for many investors currently cheering the V-shaped recovery from last quarter’s market volatility.