From Investing.com: 2025-02-27 09:36:00

S&P Global has released its 2026 earnings estimates, showing a parabolic increase due to exuberance on Wall Street. Analysts are ramping up estimates to justify overvaluations, with a record deviation above the long-term growth trend. Earnings growth is historically tied to economic activity, and deviations above 6% peak-to-peak growth trend have led to near peaks in economic growth rates. Manufacturing estimates for 2026 are optimistic but may be unsustainable long-term. Corporate buybacks play a significant role in supporting asset prices and reported earnings, but may not be sustainable in the long run. Investors should consider hedging strategies and monitoring economic indicators to navigate potential market volatility.



Read more at Investing.com: Here’s Why Analysts Estimates Have Gone Parabolic