Analysts Are Upgrading Global Earnings at a Breakneck Pace

Last year bucked the traditional trend of a steady downgrade to overly-optimistic analyst earnings estimates and it seems this year is going one better. Aided by synchronized economic growth across the world and a cut in corporate taxes in the U.S., the pace of global earnings upgrades in 2018 is the fastest in at least a decade, according to Bloomberg calculations. While some of these factors may fade as the year progresses, as long as the “unusually spectacular” trend persists, the recent stock rally might well continue, said Deutsche Asset Management in a recent note.