Indeed, based on the historical path of revisions in recession years, we may ultimately see 2023 earnings wind up at US$177 per share . If we assume an unchanged price-to-earnings multiple, this points to the S&P 500 falling to 3,000 before the bear market is complete. But there is the potential for additional downside from this level. A “normal” recessionary trough multiple is about 14x, which would put the S&P 500 at 2,500.
For example, the S&P 500 is currently trading at 16.8x next year’s earnings, but what if this estimate is 10 or 20 per cent too high? Well, then we are talking about a “true” multiple of 18.7x and 21x, respectively. No one would be talking about the market being fairly valued at these P/E ratios, especially given where interest rates are currently.With that in mind, we examined the evolution of earnings revisions during past recessionary periods.
Source: News Formal (newsformal.com)
It could also jump to 5,000 in a relief rally
Perma bear
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
B.C. Premier David Eby to lay out plans to tackle housing affordability crisisBritish Columbia Premier David Eby is expected to announce his government's plans to take on the housing affordability crisis today. The other job he has avoided for five years… Things he could have done any time the past 5 years as quality of life deteriorated and prices skyrocketed. They benefited and should be held accountable. This behavior can not be tolerated. Housing prices have increased 40% since the NDP came to power 5 years ago. What a relief that these same jokers are now going to “take on the crisis”.
Source: CHEK_News - 🏆 59. / 55 Read more »
B.C. Premier David Eby to lay out plans to tackle housing affordability crisis | National NewswatchNational Newswatch: Canada's most comprehensive site for political news and views. Make it a daily habit.
Source: natnewswatch - 🏆 58. / 59 Read more »
B.C. Premier David Eby to lay out plans to tackle housing affordability crisisBritish Columbia Premier David Eby is expected to announce his government's plans to take on the housing affordability crisis today. His other responsibility he avoided for five years? How can he avoid his job for five years and receive a promotion. Government is so corrupt. HybridPartyOfCanada would build residences north south east west for everyone and become OwnerLandlordSales and would flood the Country with accommodations driving real estate costs down or it remains high for the well off to sell amongst themselves For us , we rent
Source: CTVNewsVI - 🏆 28. / 68 Read more »
B.C. Premier David Eby to lay out plans to tackle housing affordability crisisDavid Eby, who was housing minister before running for premier, released a housing plan during his leadership campaign aimed at addressing affordability, targeting speculators and protecting renters. The other job he avoided successfully for five years. Bravo Same old, nothing changes,we will look into it, study some more and work with the municipalities. Air BnB must be fixed as part of the housing strategy.
Source: timescolonist - 🏆 15. / 75 Read more »
Rob Shaw: Why David Eby changed his mind on prosecutors and repeat offendersPremier David Eby surprised many on Sunday when he announced a government directive to Crown prosecutors to do more, where possible, on “the risk that repeat violent offenders pose to public safety in British Columbia.
Source: PGCitizen - 🏆 65. / 51 Read more »
David Eby, B.C.'s new premier, to make public safety announcementVANCOUVER — British Columbia's new premier is scheduled to announce a plan to improve public safety in the province amid concerns about random crime. David Eby, the province's 37th premier, was sworn in to the position Friday.
Source: BurnabyNOW_News - 🏆 14. / 77 Read more »