Earnings

U.S. corporate earnings are likely to disappoint, economist says

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Investors should stay bearish on U.S. stocks until the full extent of the economic damage caused by the coronavirus pandemic is known, according to TS Lombard, which warned that investors were over-estimating a quick recovery in U.S. corporate earnings.

Charles Dumas, chief economist at the economic research firm, told CNBC Tuesday that “the market is essentially trading off a view about 2021 that is not going to happen.”

“The basic point here is that in 2021 the market estimates of S&P earnings are not merely up from 2019 but they’re right back on the long-term growth trend, which is highly improbable. On our forecast, the relationship of the economy to earnings produces a 2021 number…



Source cnbc.com

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