A Deep Earnings Recession Could Crash The S&P 500: Economist

Stock market bulls are "eerily calm" as analysts expect corporate earnings for S&P 500 companies to decline for a fourth straight quarter.

Wall Street analysts expect corporate earnings for S&P 500 companies to decline for the fourth straight quarter once all the reports are filed.
An economist writing for CNN Business says, “That’s not exactly a recipe for stocks to rise.” He warns Wall Street bulls have overbought stocks.
A financial analyst for a Chicago hedge fund says clients are asking: “How long can this last?” and “Is a recession coming?”
An earnings recession is two back-to-back quarters of year-over-year declining corporate earnings. A streak of corporate earnings declines preceded the Great Recession.

It deepened dramatically after the GDP recession started. But even then falling earnings relative to GDP weren’t so sustained and consistent as they were in 2019.

Wall Street analysts expect corporate earnings to decline again for the fourth quarter of 2019. That means S&P 500 companies have been in a recession for a year now:

More: https://www.ccn.com/a-deep-earnings-recession-could-crash-the-sp-500-economist/