CRARF - 2018 In The Numbers And What It Says About 2019 - Part I: Stocks
History (and Volatility) Tends to Repeat Itself
2018 was a pretty horrific year for equities, especially outside the US.
We have just witnessed one of the biggest drops in the global earnings revision ratio since 1988.
Nevertheless, even with that sharp revision, valuations remain quite attractive.
2019 is going to be an interesting battlefield between the lower expected earnings (S&P 500 EPS) and the index itself.
It's not usual for the index to trade above the EPS trend, but this is happening during expansionary periods.
As such, the key question that will set the tone