Is the Stock Market Back in a Bubble? Recent Earnings Revisions Offer an Ominous Clue
Who needs Disneyland when you can ride the Wall Street roller-coaster for free? Since the beginning of the decade, the ageless Dow Jones Industrial Average (DJINDICES: ^DJI), benchmark S 500 (SNPINDEX: ^GSPC), and growth-oriented Nasdaq Composite (NASDAQINDEX: ^IXIC), have endured two bear markets (the 2020 COVID-19 crash and 2022 bear market), as well as two periods of exceptionally strong buying activity (2021 and the first eight months and change of 2023).
The big question on investors' minds is whether the rally we've witnessed in 2023 is for real or just another bubble brewing on Wall Street. While there isn't an economic datapoint or metric that can give us a concrete answer, a deep dive into recent earnings revisions offers a big-time clue as to what's happening on Wall Street, as well as what might happen next for stocks.
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Source Fool.com
