04-04-2016, 11:42 AM
We remain cautious on the market even if the US economy is performing quite well, earnings are pretty lousy:
Even analysts who estimate pro-forma, ex-bad-items, non-GAAP earnings that S&P 500 companies propagate to look better and that these analysts use to inflate their stock-price targets, just threw in the towel on the quarter. They expect these inflated earnings per share for the first quarter to plunge 8.5% from a year ago, according to FactSet. If this holds after S&P 500 companies report their ex-bad-items earnings, it would be the worst EPS decline since Q3 2009.
First-Quarter Earnings Are Now Expected to Really Suck | Wolf Street
It's more of a stock pickers and traders market in our opinion.