Stocks Face a Scary Earnings Surprise

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Source:Bloomberg

Wall Street analysts have lowered their overly optimistic earnings projections

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Bloomberg's median economist predicts an equal chance that the US will have a recession within the next 12 months.

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Even while the economy hasn't yet collapsed, 

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The hard numbers indicate that it will eventually, 

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And equities have little chance of being spared.

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Earnings will inevitably become more important at some point, but that change hasn't yet occurred.

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S&P 500 earnings per share tend to drop about 31% in a recession.

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FedEx news assume that Policy makers are expected to raise the upper bound of the fed funds rate by 75 basis points to 3.25 %.

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Lets see how far the stocks move.

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