There’s a lot of misleading stuff from Mike Wilson here.
First of all, one shouldn’t look at the evolution of earnings estimates in any given calendar year because analysts are notoriously overoptimistic.
This means that even in good times, earning estimates usually fall. That’s why most people look at 12-month forward estimates. In level terms, they tend to be biased upwards, but in rate of change terms, they are not. And as the chart below shows, they have been rising not falling.
Second of all, earnings tend to lag stock prices. Thus, it is not correct to say that the stock rally will end when profits dip. Stocks will drop well before analysts start cutting earnings estimates.
https://x.com/PeterBerezinBCA/status/1772659177476730976?s=20
https://x.com/GlobalMktObserv/status/1772660988510196084?s=20
- Forums
- ASX - General
- Its Over
Its Over, page-20953
-
- There are more pages in this discussion • 1,578 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Featured News
The Watchlist
LU7
LITHIUM UNIVERSE LIMITED
Alex Hanly, CEO
Alex Hanly
CEO
SPONSORED BY The Market Online