While the Dow Jones, Nasdaq and S&P 500 are posting record highs daily, Goldman is pessimistic about the rally. Positive revisions to aggregate S&P 500 EPS estimates are rare — during the last 33 years, consensus EPS estimates have been revised upward from their starting point just six times," he said. Wall Street bank Goldman Sachs has seen "cognitive dissonance" in the stock market surge after Donald Trump won the US presidency. "Investors, S&P 500 management teams, and sell-side analysts do not agree on the most likely path forward. S&P 500 is up 10 percent since the election despite negative [earnings per share] revisions from sell-side analysts,"said David Kostin, the chief US equity strategist at Goldman Sachs.
As it stated in
— Donald J. Trump (@realDonaldTrump) February 16, 2017In a press conference on Thursday afternoon, Trump again highlighted the stock market's recent performance, saying, "The stock market has hit record numbers. In a Thursday morning tweet, Trump exclaimed: "Stock market hits new high with longest winning streak in decades. Additionally, if stock prices have run up in anticipation of big tax changes, then there would be considerable risk that disappointing news on this front could trigger a sell-off in stock prices. Significantly, Trump's tweet on Thursday suggests that an announcement on taxes would further boost stock prices. Stock prices, however, are a discounting mechanism that, by nature, are likely to front-run the announcement of any news that would be positive for markets.
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collected by :Jack Luxor
As it stated in
— Donald J. Trump (@realDonaldTrump) February 16, 2017In a press conference on Thursday afternoon, Trump again highlighted the stock market's recent performance, saying, "The stock market has hit record numbers. In a Thursday morning tweet, Trump exclaimed: "Stock market hits new high with longest winning streak in decades. Additionally, if stock prices have run up in anticipation of big tax changes, then there would be considerable risk that disappointing news on this front could trigger a sell-off in stock prices. Significantly, Trump's tweet on Thursday suggests that an announcement on taxes would further boost stock prices. Stock prices, however, are a discounting mechanism that, by nature, are likely to front-run the announcement of any news that would be positive for markets.
read more visit us Money
collected by :Jack Luxor
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