Opening Statement from the November 2019 Dividend Gems

Opening Statement from the November 2019 Dividend Gems

Originally published on November 17, 2019

Earnings

After delivering the best year of earnings growth since 2010 at over 20 percent for 2018, it has been no surprise that 2019 would be a more difficult year. However, consensus estimates by corporate executives and Wall Street analysts were predicting a significant earnings rebound in the second half of 2019. 

Over the past several months we have been warning about overly optimistic earnings estimates that failed to sufficiently factor in the full impact of trade tensions. At the same time we pointed to additional factors that were adding to a reduction in earnings growth in addition to stock market valuations.

As previously forecast, the pickup in earnings growth expected by corporate management and Wall Street analysts in the second half of 2019 has failed