Apr
30
Peak Earnings Are Rattling Equity Investors, But History Says Stay Calm
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Investors barely reward companies that top profit estimates
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RBC data show market will be fine as long as growth continues
It’s probably time to declare peak earnings. Does that mean the stock market’s doomed?
RBC Capital Markets studied the previous five profit cycles and found that the strongest rate of growth was always followed by a period of lackluster equity returns. What happens longer-term comes down to whether growth actually contracts — something not forecast for at least another two years…
