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Amidst news headlines warning of a recession, detrimental economic conditions and market volatility, here are a few factual items to keep in mind:READ THE ARTICLE
📌 The S&P is not the U.S. economy: While in some aspects they can reflect one another, the S&P is more focused on “the manufacture and sale of goods.”
📌 Most companies usually beat estimates: In the grand scheme of returns, though, “‘better-than-expected’ has lost its meaning.’”
📌 Don’t expect average returns: On average, the stock market does return eight to ten percent each year; however, this rarely happens in a given year.
📌 Analysts never nail forecasts: Estimates will be revised (whether up or down), again and again.
📌 P/E ratios won’t tell you what happens next year: Whether high or low, P/E ratios are too scattered across the board to signal any relationship with the following year.
📌 There are lots of layoffs every month: Even during booming economic times, layoffs happen.
Look beyond the clickbait and remember: Success as an investor will have little to do with what makes CNBC News on a day-to-day basis.