Wall Street warns of inflated earnings estimates and risks from Trump's tariff policies

From Yahoo Finance: 2025-04-17 08:17:00

Wall Street’s earnings estimates for the S&P 500 are under scrutiny, with analyst Adam Parker warning of overly optimistic projections. Parker anticipates only a 1% increase in earnings this year and 4% next year, cautioning about the penalties for missing estimates. Recent warnings from companies like Delta and Nike have resulted in significant stock declines. The uncertainty surrounding Trump’s tariff policies and potential trade deals with China are further complicating the economic landscape. With inflated EPS estimates and market risks, investors like Larry McDonald suggest a diversified portfolio approach, including commodities and hard assets like gold.



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