Get Your Motor Runnin’ (Away From This Beaten-Up Biker)

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Get Your Motor Runnin’ (Away From This Beaten-Up Biker)


Earnings season is underway – and predictions are bullish, to say the least.

Zacks says S&P 500 first-quarter earnings are projected to swell by 16.6% on sales growth of 7.5%, compared with Q1 2017.

Indeed, 14 out of the 16 Zacks sectors will notch earnings growth, with 11 of them enjoying double-digit expansion.

But one guy doesn’t think strong earnings will trigger a market rally.

In fact, he says it won’t be enough to prevent another correction.

That man is Nobel Prize-winning economist and Yale University professor, Robert Shiller – who correctly predicted both the dotcom crash and the real estate bubble that sparked the 2008 financial crisis.

In a CNBC interview, Shiller cautions that while “a solid earnings season is good for the market, it’s not something we should bank on.”

He contends that, “As of the fourth quarter, real S&P 500 earnings were still below their 2015 level, if you correct for inflation. So it’s not like we’re in this spectacular market.”

He’s got a point. We’ve seen two corrections since February alone – and Shiller says stocks are still overvalued.

So with that in mind, don’t put your money in the wrong place…



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