S&P 500’s Tug-of-War Between Investors & Industry Analysts

In other words, there’s an epic tug-of-war between bearish investors who are lowering the valuation multiples they’ll pay and bullish industry analysts who are raising the earnings they forecast for this year and next year.

So far this year, investors have been winning the war. But it isn’t over just yet, as the S&P 500 remains in correction territory—though it has gotten closer to bear-market territory now that it is down 16.8% from its record high on January 3 through yesterday’s close.