Higher inputs costs and demand destruction from inflation (and the Federal Reserve’s interest rate hikes) are resulting in margin compression for companies, pinching their profits.
As a result, companies are revising downwards their future earnings expectations.
So as Q2 earnings calls start happening over the next two weeks, expect a tsunami of these revisions to force Wall Street analysts to downgrade their target prices for many stocks.
Will these be the next big shoe to drop that will force stock prices down even further?
It sure looks so.
Financial advisor Lance Roberts and host Adam Taggart also tackle Fed policy, recession risk, and America’s massive retirement problem in this wide-ranging Weekly Market Update.
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