Are US equity markets living on borrowed time?
Despite Q4'24 corporate results coming in ahead of Wall Street estimates (see below), the big takeaway from the earnings season is that S&P 500 EPS forecasts for 2025 have actually been falling due to the increasingly uncertain economic backdrop, threat of trade tariffs, and proposed new Trump/Musk-induced government cutbacks.
That said, investors don't seem to be flinching, as the S&P500 at 6,117 still trades on a lofty 22.5x forward PER.
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