The negative earnings pattern that's not necessarily bad for the stock market 📉
When something 'typically' happens, it's probably expected and priced in 🤔
“We expect the trajectory of earnings estimates to weaken going forward, but not enough to be a negative catalyst for equity prices,” Goldman Sachs’ David Kostin wrote about the S&P 500 on Friday.
For less experienced investors, that doesn’t sound right. After all, TKer Stock Market Truth No. 5 states that “earnings drive stock prices.”
How could lowered earnings estimates not be bad for stocks?
