The stock market is rebounding without the most important ingredient it needs for long-term gains — and one quant chief warns it's a setup for another crash

Associated Press Andrew Lapthorne, the global head of quantitative research at Societe Generale, is skeptical of forecasts for a "perfect" v-shaped recovery in corporate earnings.  The consensus forecast among analysts is that by the end of 2021, profits will be growing at nearly the same rate as they were in late-2019. Lapthorne considered the unique nature of this crisis and concluded that the consensus is too optimistic. Click here for more BI Prime stories.  Wall Street's expectations for recovery from the coronavirus crisis seems too good to be true.  That's according to Andrew Lapthorne, the global head of quantitative research at Societe Generale. He is skeptical that the stock market's strong rebound from its trough in March matches up with the reality that will unfold in the months ahead.  In particular, Lapthorne is skeptical of the "perfect" recovery that is reflected in real-time consensus forecasts for earnings, the biggest long-term driver of stock prices. Data he compiled shows that analysts expect global profits to fall by 21% this year and then rise 21% in 2021. In other words, the prediction is that economic conditions will recover so quickly that by December 2021, corporate profits will be back to where they The post The stock market is rebounding without the most important ingredient it needs for long-term gains — and one quant chief warns it's a setup for another crash appeared first on Global Asset Management Seoul Korea - How To Asset Manage. Seoul, Korea
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