Earnings season is starting and its expected to be another good one. On average analysts anticipate S&P 500 companies will report a 15% increase in earnings from the prior quarter - basically in line with forth quarter (2017) results.
It’s another sign the the US economy is - at present - robust.
Equity bear markets and recessions almost always overlap. Unless you think a recession is around the corner – and we don’t – you should probably over-weigh stocks.*
Weekly Update through April 6, 2018 The S&P 500 lost -1.35%, even as the Dow Jones dropped -67bps, the Russell 2000 lost -1.04% and the Nasdaq decreased -2.07%.
As for US bonds, they lost -5bps.
Globally, the MSCI World Index lost -55bps and the Barclays Global Aggregate Bond Index lost -24bps.
The Euro Stoxx 50 added 1.59% in local-currency (Euro) and 1.46% USD. Meanwhile, the Topix gained 90bps in local-currency (Yen) and 25bps in USD.
*Two years out is not "around the corner."
