Accelerating Earnings, Surging World Growth, And Stocks Break A Record Again
With the stock market breaking records for months, fear of a bubble is growing; but so is evidence that the new tax law is boosting the economy more than initially thought.
In 2015 and 2016, stocks essentially went sideways. After the November 2016 election, stocks broke out.
Since the election 14 months ago, the S&P 500 is up 33%, largely on the promise of lower taxes.
In just the last few weeks, since the December 22nd signing of the tax law, Wall Street analysts sharply hiked their earnings estimates for the S&P 500.
Earnings expectations are surging and earnings are ultimately what drive stock prices.
It explains why stock prices soared recently.
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