The wrong question — and the right one — to ask about earnings headwinds💬

Why expected earnings can rise despite bad news 📈

(Source: FactSet)

Something extraordinary happened during the first three months of the year: Analysts revised up their forecasts for S&P 500 earnings.

According to FactSet, analysts currently expect the S&P 500 to earn $228.43 per share. This is 2% higher than the $223.43 expected as of December 31, 2021.

Some of this can be explained by analysts fine-tun…