2018 is the year of the EARNING$, baby!
It’s time for Corporate America… to shine! Wall Street is getting ready for some crazy good earnings results over the next few weeks. Analysts have predicted earnings for the S&P 500 will go up close to 20% compared to last year. The fourth quarter is looking very promising, as well.
But don’t get too excited… because these blockbuster earnings may be short-lived. Bond yields are rising which means companies will be paying more to fund growth (and will have less money, as a result). There is also the looming “trade war” that seems to have no end in sight. And last, but not least, 2018 will leave behind tough shoes to fill.
Because of these reasons… earnings are expected to grow around 7% in the first half of 2019. Growth is growth, but 7% is a far cry from the expected 20% this quarter. That is what the “professionals” are predicting, anyway. But hey – who really knows – just be sure to enjoy the earnings while they last!