David Rosenberg of Rosenberg Research warns that the ongoing earnings recession persists and shows no signs of coming to an end
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We're in an earnings recession, and it's not over yet: Rosenberg Research's David Rosenberg The global economy has been going through a series of ups and downs lately, with the ongoing trade war, geopolitical tensions, and uncertainties surrounding Brexit. And now, it seems that these factors are finally taking a toll on corporate earnings. According to David Rosenberg, the chief economist and strategist at Rosenberg Research, the world is currently in an earnings recession. This term refers to a period in which corporate earnings consistently decline over several consecutive quarters. And unfortunately, Rosenberg believes that this earnings recession is far from over. One might wonder why corporate earnings are declining in the first place. The answer lies in the fact that companies are facing numerous headwinds that are impacting their profitability. For instance, the trade war between the United States and China has disrupted global supply chains and has increased costs for many companies. This has led to lower profitability and a decrease in earnings. Furthermore, geopolitical tensions have also played a significant role in this earnings recession. Uncertainties surrounding Brexit and political unrest in various parts of the world have created an environment of caution, with businesses hesitant to make long-term investment decisions. This has further dampened corporate earnings as companies focus on cost-cutting measures rather than expansion. Rosenberg believes that this earnings recession will persist, and possibly worsen, in the coming months. He points out that in addition to the aforementioned factors, companies are also facing rising labor costs and a slowdown in global economic growth. These factors, combined with the uncertainties already mentioned, make it unlikely for corporate earnings to rebound anytime soon. So, what does this mean for investors and the economy as a whole? Well, an earnings recession can have wide-ranging implications. In the short term, it can lead to stock market volatility as investors adjust their expectations and re-evaluate the value of companies. This can create opportunities for traders but can also be a cause for concern among long-term investors. Furthermore, a decline in corporate earnings can have a spillover effect on the broader economy. Lower profitability can lead to job cuts, reduced investments, and less spending by corporations. This, in turn, can impact consumer confidence and overall economic growth. However, it is important to note that an earnings recession is not a definitive indicator of an impending economic downturn. It could just be a temporary period of adjustment, as companies navigate through various challenges. Additionally, long-term investors should keep in mind that stock market performance and corporate earnings do not always move in tandem. In conclusion, we are currently experiencing an earnings recession, according to Rosenberg Research's David Rosenberg. The combination of trade tensions, geopolitical uncertainties, rising labor costs, and a slowdown in global economic growth has put corporate profitability under pressure. While this is concerning for investors, it does not necessarily mean that an economic downturn is imminent. Nonetheless, it is crucial to closely monitor corporate earnings and their implications for the broader economy. https://inflationprotection.org/david-rosenberg-of-rosenberg-research-warns-that-the-ongoing-earnings-recession-persists-and-shows-no-signs-of-coming-to-an-end/?feed_id=126631&_unique_id=64d7481d99c0e #Inflation #Retirement #GoldIRA #Wealth #Investing #breakingnews #businessnews #cable #cablenews #CNBC #financenews #financestock #financialnews #money #moneytips #newschannel #newsstation #SquawkontheStreet #stockmarket #stockmarketnews #Stocks #usnews #worldnews #RecessionNews #breakingnews #businessnews #cable #cablenews #CNBC #financenews #financestock #financialnews #money #moneytips #newschannel #newsstation #SquawkontheStreet #stockmarket #stockmarketnews #Stocks #usnews #worldnews
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