3/28/2018 0 Comments
Q1 is coming to an end in the US
The first quarter is coming to an end. This will be the start of chatter around earnings in the US and what this might mean for the stock market. There shouldn't be much in the way of surprises, at least ones that will reshape market sentiment, but attention should be paid to signs of the earning story possibly butting up against 'peak earnings to revenue growth'.
The Fed is paring back its balance sheet after a decade of easing, easy credit has allowed investments in growth and innovation that lowered costs, and tax cuts are now going to be factored into stock buybacks and dividends. Going forward there is tightening credit, higher rates on those loans, and higher costs having to eventually be passed on to consumers. This will make the earnings growth stories of the past decade harder to come by. I will be looking to put out an article on this in more detail in the coming days and keeping an eye on the trends that come out of this earnings season.
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