Recession – Not in the Foreseeable Future

by Laura Ehrenberg-Chesler on May 23, 2018

in Earnings,Economic Indicators

From Economist Ed Yardeni today:

Since we don’t see a recession in the foreseeable future, we continue to focus on the forward P/E, which isn’t alarmingly high, in our opinion. The further out that a recession is perceived as likely to happen, the more sustainable are above-average P/Es. That’s because long expansions give investors the time to see earnings grow, as predicted by industry analysts.

We currently don’t expect a recession over the rest of this year or in 2019. What about 2020? Ask us again in 2019. As long as inflation remains subdued, as we expect, odds are that the expansion will go on and on—until further notice.”

Leave a Comment

Previous post:

Next post: