Stocks Risk a Hard Fall With No Earnings Net
Current valuations need profit growth to support them, but can we expect much? Plus, politics and performance.
Sky-high stocks and dwindling profits leave investors less room for error.
Photographer: SEAN GLADWELL/Moment RF via Getty Images
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Last year was a great year for the U.S. stock market. Most of us have gathered that. We also know that this had very little to do with profit growth and almost everything to do with growth in the multiples that investors were prepared to pay to gain a share of those profits. Such a situation cannot continue indefinitely. So what exactly is happening to profits, and what growth is it reasonable to expect? That question proves hard to answer.
