Itâ??s been a rough time of late — questions are being raised about growth prospects, both for the global economy and the stock market. Weâ??ve had more companies issue negative outlooks than we have had in some time, while the latest round of economic data has been weaker than expected. It boils down to people being once again worried about growth.
All of this has taken a toll on the major stock market indices, leaving the Dow Jones Industrial Average down more than 550 points from where it was just two weeks ago. Also down big are both the S&P 500 and the Nasdaq Composite Index. That drop has investors frustrated, worried and, in some cases, according to a new poll by CNNMoney, filled with â??extreme fear.â?
When I look at these earnings reports roll in and even economic forecasts like the one from the International Monetary Fund, the question I ponder is how aggressive full-year expectations had been ahead of 2014. Per data from FactSet, the Street’s average full-year earnings target sits at $120.09 per share, up 9.9% from $109.30 per share in 2013. In 2012, the consensus was $103.80 per share.
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