A summary of the news headlines for a mainstream financial media outlet delivered the following report across the airwaves this morning. Corporate earnings, after several quarters of decline, were poised to turn a corner and meaningfully improve through the remainder of this year into next. Wow, this is great news! And for those who may not be following the earnings data all that closely, this headline coupled with word of so many companies beating expectations on a daily basis might be enough to make the casual investor decide that it’s time to get back into the market before the next train leaves the station to the upside. But here’s the problem. Nothing as of yet actually confirms that corporate earnings are turning a corner. In fact, the corporate earnings outlook became measurably worse in the past week.
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