Excerpt from Barron’s quoting DataTrek co-founder Nick Colas:
…. “DataTrek Research co-founder Nicholas Colas sees more pain ahead as well. In a note to clients on Friday, he mapped out possible paths for the S&P 500 based on the trajectory for earnings.
With the S&P 500 trading at about 18 times earnings, Colas says a modest 15% earnings decline would put the S&P 500 at around 3312. On Friday, the S&P 500 closed at 3674.84.
If earnings fall 25%, to the levels of 2018-2019, from the current $216 a year estimated, the S&P 500 would be closer to 2916. But if S&P 500 earnings see a “typical” recessionary hit of about 28%, Colas sees the index at 2790″….
Full article here on Barron’s.