A Concerning Q3 Earnings Trend

It’s only been 10 days since I updated my Expectation Ratio, but as the bulk of the S&P 500 has started to report earnings, the trend is clear.

The caution that the ER was predicting is clearly coming to fruition despite very healthy earnings overall.

Remember, the ER is meant to be a forward looking indicator of what’s to come in terms of future expectations so the caution in corporate guidance is not unexpected given the sub 1.0 reading in the ER.

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