Meanwhile, Earnings Expectations Continue To Come Down

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		Home Tech Finance Markets Politics Strategy Entertainment Advertising Retail Sports Life Monday, February 4, 2013 Meanwhile, Earnings Expectations Continue To Come Down On Friday, stocks closed at their highest levels since late 2007.  Meanwhile, earnings growth expectations continue to come down. "Since the end of the fourth quarter (December 31), analysts have also reduced earnings growth expectations for Q1 2013 (to 0.5% from 2.4%) and Q2 2013 (to 5.4% from 6.7%)," wrote FactSet's John Butters on Friday. Earnings are arguably the most important driver of stocks.  So, when stocks go up and earnings expectations come down, valuations are going up.  In other words, stocks are getting more expensive.  Technically speaking, multiples are expanding. This is something we've written about before expansion.  And for the bearish market watchers who have been pointing to falling earnings as a reason to get out of stocks, this ongoing multiples expansion is a true test of patience. Here's a chart from FactSet showing stocks (green) trending up, while earnings (blue) trend down: Read » Also On Money Game Today: Yum! Brands Beats Earnings Expectations But Gets Slammed In China DOW FALLS 129 POINTS: Here's What You Need To Know Advertisement CHART OF THE DAY: The Scariest Jobs Chart Ever CHART OF THE DAY: 4 Notable Exceptions To The Stock Market 'January Effect' CHART OF THE DAY: The Jaw-Dropping Decline In Military Spending That Clubbed GDP Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: dwyld.kwu.jobhuntportal11@blogger.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Money Game RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

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