Excerpt from Business Insider quoting DataTrek co-founder Nick Colas:
…. “Would companies be hiring and advertising open positions as aggressively as the US labor market data shows if they were expecting a 7% sequential drop in profitability? It seems unlikely,” DataTrek co-founder Nicholas Colas said.
And the US corporate bond market isn’t signaling any stresses that would suggest a deterioration in earnings power, with low yields suggesting that cash flows should remain high and stable for years to come.
“In +30 years of covering US equity markets, we can’t think of a time when analysts have so seriously underestimated US corporate earnings power in any given year,” Colas said”….
Read the full article here on Business Insider!