2018: Rational or Wishful Expectations? - FINANCIAL-24
The year 2017 ended with high hopes for 2018. The market expects S&P 500 GAAP earnings to increase to 118 in Q3 2018 (https://us.spindices.com), and consensus expectations for the S&P 500 are equally bullish.
We are much less optimistic. We estimate that the probability that GAAP earnings will hit 118 in Q3 2018 is less than 15 percent. In contrast, our year end baseline estimate of GAAP earnings is 105; for the S&P 500, our expectation is for the index to end the year significantly below current levels (2,280).
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Title : 2018: Rational or Wishful Expectations? - FINANCIAL-24
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