Established in 1957, the S&P 500, also known as the Standard and Poor’s 500 Index, is a capitalization-weighted index of 500 large-cap common stocks. Capitalization-weighted means that the companies with largest stock market capitalization have the greatest impact on the value of the index. The S&P 500 is the second most widely followed stock market index in America after the Dow Jones Industrial Average.
S&P 500 was last modified: June 5th, 2012 by admin
Here are four reasons why the stock market will continue to fall, starting with contracting earnings and revenue.
On June 30, analysts were expecting S&P 500 companies to report a decline of one percent in corporate earnings. As of September 25, they now expect a decline of 4.5%. (Source: FactSet, September 25, 2015.) Revenue is .
Could Weak Earnings Spark a Stock Market Crash in 2016?
Weak corporate earnings could result in a stock market crash in 2016, dashing the mainstream belief that the U.S. economy is in a recovery.
The Federal Reserve’s uncertain interest rate policies and lower commodity prices have jointly served as catalysts to spark market speculations..
The U.S. stock markets have experienced two strong years of back-to-back gains; the S&P 500 soared approximately 30% in 2013 and a solid 13% in 2014; and the Dow Jones Industrial Average recently topped 18,000 for the first time ever. With the Federal Reserve expected to barely increase interest rates in the second half of 2015, the.
Moody’s and Fitch did this last spring. Standard & Poor’s (S&P) has joined them by downgrading Japan’s economy rating from AA- to A+, sending a strong signal that the rating agency is not bullish on “Abenomics” pulling the country out of economic collapse mode. All this despite the “promising start” after Prime.
Sure, since the Dow Jones Industrial Average and the S&P 500 both went through their mini-crash in late August, the stock market has rallied back somewhat. But the fact is the market is still down 10% from its 2015 high. And three stock market indicators I follow are warning of an even a bigger market sell-off ahead.
These three indicators.
Immediate term outlook:
The bear market rally in stocks that started in March 2009, extended because of unprecedented central bank money printing, is coming to an end. Gold bullion is up $1,000 an ounce since we first recommended it in 2002 and we are still bullish on the physical metal.
Short-to-medium term outlook:
World economies are entering their slowest growth period since 2009. The Chinese economy grew last year at its slowest pace in 24 years. Japan is in recession. The eurozone is in depression. With almost half the S&P 500 companies deriving revenue outside the U.S., slower world economic growth will negatively impact revenue and earnings growth of American companies. Domestically, America’s gross domestic product grew by only a meager 2.3% in the second quarter, which will negatively impact an already overpriced equity market.