This run of negative earnings growth is also known as the 'profit recession' , or 'earnings recession'
The expectation comes from analysts polled by FactSet and reported in the WSJ (it may be gated): Profit Slump for S&P 500 Heads for a Sixth Straight Quarter
- the energy sector is projected to yet again report the largest year-on-year earnings decline of all sectors in the S&P 500
The Journal article says further (file this under "You don't say?"):
- Grim corporate results haven't kept stocks from reaching highs
Quite:
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Oh, while I'm at it, I quite enjoyed this piece on Albert Edwards last week: Meet the affable bear who expects the S&P to tumble to 20-year lows
I particularly liked this quote:
- "The only way a critic could say the Ice Age hasn't panned out is that the S&P has been flirting with all-time highs recently, whereas I have been a longstanding bear of equities," he said in an email. "Bonds have done what I said in absolute terms and the Western economies have been more like Japan than anyone else predicted [with regard to] flirting with outright deflation. No one else was even contemplating these events 20 years ago."
Edwards has been very wrong indeed on the S&P500, but "only" in that he has been a bear and they are flirting with all-time highs.
Uh, yeah. :-D
Otherwise, though, his Ice Age ideas on deflation etc. have been OK.