Extreme Stock Market Concentration Proves an Imminent Reversal is Just Ahead of Us.

 

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  1. (0) 0
    LB_NYC says:

    I read the entire report from Factset (Earnings insight). the key highlights are

    Key Metrics
    – Earnings Scorecard: For Q1 2023 (with 97% of S&P 500 companies reporting actual results), 78% of S&P 500 companies has reported a positive EPS surprise and 76% of S&P 500 companies have reported a positive revenue surprise.

    – Earnings Decline: For Q1 2023, the blended earnings decline for the S&P 500 is -2.1%. If -2.1% is the actual decline for the quarter, it will mark the second straight quarter that the index has reported a decline in earnings.

    – Earnings Guidance: For Q2 2023, 63 S&P 500 companies have issued negative EPS guidance and 41 S&P 500 companies have issued positive EPS guidance.

    – Valuation: The forward 12-month P/E ratio for the S&P 500 is 17.8. This P/E ratio is below the 5-year average (18.5) but above the 10-year average (17.3).

    The report is available at
    https://advantage.factset.com/hubfs/Website/Resources%20Section/Research%20Desk/Earnings%20Insight/EarningsInsight_052623.pdf

    Peter – Please talk about the way they have presented the view on PE ratios and earning Decline & Guidance.

  2. (1) 1
    Ken Seligson says:

    Maybe, but you’ve been on the wrong side most of the last three years.