The Market Needs Some E

The U.S. stock market has a fundamental problem. Corporate earnings are not good. Given that people typically do not like to pay higher prices for things that are becoming worth increasingly less, at some point this fact may come back to haunt investors. And while the picture looks kind of ugly on the surface, the view is even more unsettling when inspecting the dark underbelly of the market. As a result, the market badly needs some “E” – an increase in earnings in the price-to-earnings ratio. Otherwise, the “P” might take matters into its own hands to get stock valuations back on track.

Please click on the link to read more of my article on Seeking Alpha.

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