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Falling 2019 Profits On Collision Course With The Great Bull Market

Falling 2019 Profits On Collision Course With The Great Bull Market

U.S. stocks have staged an impressive rebound to start 2019 after a brutal fourth quarter, but an increasingly gloomy outlook for corporate profits indicates that these gains may be unsustainable. The latest consensus estimates from stock analysts anticipate a 1.4% drop in S&P 500 earnings for the first quarter of 2019, with 7 of the 11 sectors in the S&P declining, the Wall Street Journal reports. Doug Kass, founder of hedge fund Seabreeze Partners Management, warns that the stock market has “detached itself from reality" and that "bull market complacency is back," per his blog as quoted by MarketWatch.