Wilson spoke in an interview with Bloomberg TV, citing uncertainty over when the FOMC will cut rates, firms facing diminished pricing power, resulting an increased likelihood of disappointing earnings results.
- “The average company has not had good earnings results,”
- the big gain in the S&P 500 YTD 2024 has been powered by a small number of companies
- price to earnings multiples have been rising, “Valuations to me look very unexciting”
Wilson has recently lifted his base-case 12-month forecast for the S&P500 in a year, to 5,400 points, from his previous forecast of 4,500.
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As an aside, UBS is looking for a good earnings season:
- US stocks – Q2 earnings seasonn about to kick off – UBS looking for solidly higher
This article was written by Eamonn Sheridan at www.forexlive.com.
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