Are US equity markets living on borrowed time?
Are US equity markets living on borrowed time?
Despite Q4'24 corporate results coming in ahead of Wall Street estimates (see below), the big takeaway from the earnings season is that S&P 500 EPS forecasts for 2025 have actually been falling due to the increasingly uncertain economic backdrop, threat of trade tariffs, and proposed new Trump/Musk-induced government cutbacks.
That said, investors don't seem to be flinching, as the S&P500 at 6,117 still trades on a lofty 22.5x forward PER.
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