Excerpt from Yahoo Finance’s latest article quoting DataTrek Research:
….. “The Trump tax cuts are making the 2018-2019 comparables for earnings much less favorable than the ones from 2017-2018.
That could spook investors.
“It’s like if you go to a two-act play and the first act ends on an amazing high note and everybody applauds,” said Nick Colas, co-founder of DataTrek Research. “Then you go to intermission and wonder how the second act be any better than that. Sometimes you’re better off leaving at intermission.”
This scenario could be particularly pronounced for first quarter earnings in 2019, where Colas expects zero percent year-over-year earnings growth, given the blowout 25% year-over-year earnings growth seen for first quarter of 2018.
“Everybody understands this year’s 20+% earnings growth was driven by things that were not in the company’s control. Like tax cuts,” Colas said”……
Read the whole article here on Yahoo Finance!