Why the stock market is only going to get worse

As you probably already know, the stock market has been having problems of late.

Let me add another thing you can worry about.

According to Refinitiv Thomson Reuters, 80.7 percent of the 140 companies that have recently reported quarterly results have beaten the estimates of Wall Street analysts. And only 10.7 percent have seen earnings miss expectations.

That is great news considering that historically only 64 percent exceed the estimates and 21 percent miss.

So why is that bad news? Because even under these wonderful conditions, the stock market isn’t doing well. And that bodes poorly for the market when corporate earnings get back to their historical norms.

Next year, corporate profits probably won’t be as impressive because 2019 earnings will be compared with the 2018 numbers, which have been aided by the reduction in corporate taxes.

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