Profit Outlook Is Cut Like It's 2009. Don't Worry About It
- Analyst downgrades exceed upgrades by most since 2009: Citi
- Market is at advantage because mood is already negative: Hobbs
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Analysts may be slashing earnings forecasts at a frightening speed, but the market isn’t too bothered.
The reason? Traders have priced in future profit cuts by storming out of stocks in December, about a month before Citigroup Inc.’s Earnings Revision Index showed that the number of analysts’ global earnings downgrades exceeded upgrades by the most since 2009.