Falling profits of U.S. corporations recently, will inevitably lead to recession – analysts of TeleTrade. The market is quite mistaken in trying to assess the future prospects for growth stocks, as regards not the most successful figures . For completeness, you should pay attention to the indicator MSCI, which estimates the annual dynamics of earnings of U.S. companies .
The dynamics of this index indicates that the drawdown profits began in late 2013 , and such indicators index , in practice , lead inevitably to the ensuing recession with decreasing investment by companies. It should be noted that just investments are the most volatile part of GDP.
On the other hand , arrived 496 companies included in the index S & P500, in the fourth quarter of 2013 rose 8.5% , but the data that underpin most analysts , in a sense, ” painted on ” – analysts say TeleTrade. Such a rise in profits for the most part formed by charge-offs , that is understating the book value of assets. Such write-off companies have made in 2012 . Thus, there is every reason to believe that the growing disparity of these two indices is a signal indicative of lower quality data on profits of companies . Accordingly trust the data S & P500 can not be at 100% .
To date, investors focused on the income of the first quarter of 2014 , which will soon be over . Analysts’ forecasts are at 2.1 % , much lower than expected 6.5% in the beginning of the year .
Growth of U.S. shares in doubt
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