The market, earnings, and the economy from 10,000 feet - March 2022
During market-shaking events, we remind investors that it would take a serious deterioration in the earnings outlook to push the market into a state of overvalued vulnerability. We would likely see this ahead of time in the leading indicators of recession. Our recession scorecard is showing no such weakness. Ultimately, the long-term relationships between stock price appreciation, corporate proft growth, and economic growth are remarkably stable. Understanding these relationships can put shorter-term market volatility, and even meaningful declines, into perspective.
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