Excerpt from the Wall Street Journal quoting DataTrek’s Nick Colas:
….. “There is a silver lining. The S&P 500 has historically struggled in the short term after a peak in earnings growth. But the stock market has managed to produce double-digit percentage gains over the following three years when profit growth peaked and then decelerated—rather than outright contracting, according to RBC Capital Markets.
“Equity markets are saying to companies that the easy money has already been made,” said Nicholas Colas, co-founder of DataTrek Research. “In 2019, they’ll have to work for it”…..
Read the whole article here in the WSJ!