Financial Post’s Larysa Harapyn speaks to Rosenberg Research chief economist David Rosenberg about what happens when you combine one of the weakest economic cycles of all time with one of the most powerful bull markets.
Corporate Earnings Went Down in 2019
Even though Earnings went down for quarters in row: 2019 Q1, Q2, Q3, Q4. (Article: Sept 21)
Stocks went up Anyway
Stocks went up 30% because the market is not correlated with the economy due in part to corporations buying back their stock.
Do Spectacular Earnings Justify Spectacular US Stock Prices?
With share prices and corporate earnings moving together on a nearly one-for-one basis, one might conclude that the US stock market is behaving sensibly, simply reflecting the US economy’s growing strength. But the stock market has not always been so dismissive of the volatility of earnings.
Trump says the stock market would crash if he were to be impeached
‘You would see numbers that you wouldn’t believe, in reverse,’ Trump told ‘Fox & Friends’
..Trump has often hitched his political wagon to the performance of stock market.
However, some market participants believe that the president, despite his pro-growth policies and the corporate tax cuts enacted late last year, isn’t the main driver for the current market expansion.
“Online prediction markets now make the odds that President Trump will be impeached at 45%, a new high. Equity markets don’t seem to care, and we think they are right,” wrote Nicholas Colas, co-founder of market analytics firm DataTrek Research in a Thursday note.
.. Colas said low rates and, solid corporate earnings and a strong dollar have been the real underpinnings of the market’s bullish tilt.
To be sure, impeachment doesn’t necessarily translate to a removal from office as Trump implies. Bill Clinton was impeached by the House in 1998 but acquitted by the Senate. Clinton’s impeachment had very little impact on the market.