A Huge Disconnect

Since the election and into year end, the market has ripped higher. During this same time trailing earnings/share estimates have moved lower, creating the largest divergence during the past 10 years.

San Ramon independent fee-only advisor and CFP planner

The question investors need to ponder is who is right?  Earnings estimates or the market? The larger the divergence the larger the potential correction so making sure you are on the right side of the next move is of critical importance. The good news is we will likely find out the answer to our question real soon as earnings season has already started but will be in full swing next week.

Regardless of what happens, are YOU ready?