Business
Investors trust for more market volatility as estimated earnings drop
Corporate earnings expectations are falling. That means the stock market again there is a risk of an expensive appearanceeven after this year’s slump.
Wall Street often uses the ratio of a company’s stock price to its earnings as a measure of whether a stock looks cheap or overvalued. By that metric, the market as a whole has been particularly expensive over the past two years as easy monetary policy boosted the major stock indexes. to dozens of new highs.