Dangerously Rosy Earnings Estimates Will Plunge Stocks When They Adjust | Lance Roberts

WORRIED ABOUT THE MARKET? SCHEDULE YOUR FREE PORTFOLIO REVIEW with Thoughtful Money's endorsed financial advisors at https://www.thoughtfulmoney.com

2026 forward corporate earning estimates are the farthest they have ever been from historical averages.

This makes a future downward revision a near-guarantee at this point; which will in turn force stocks to reprice downwards as well.

So warns portfolio manager Lance Roberts.

While he doesn't see much on the immediate radar to suggest the market is in any near-term trouble, he's concerned this lurking repricing risk will grow the more that earning estimates distort to the upside.

For everything that mattered to markets this week, watch this Weekly Market Recap video.

#corporateearnings #aistocks #marketcorrection
_____________________________________________

Thoughtful Money LLC is a Registered Investment Advisor Promoter.

We produce educational content geared for the individual investor. It’s important to note that this content is NOT investment advice, individual or otherwise, nor should be construed as such.

We recommend that most investors, especially if inexperienced, should consider benefiting from the direction and guidance of a qualified financial advisor registered with the U.S. Securities and Exchange Commission (SEC) or state securities regulators who can develop & implement a personalized financial plan based on a customer’s unique goals, needs & risk tolerance.

IMPORTANT NOTE: There are risks associated with investing in securities.

Investing in stocks, bonds, exchange traded funds, mutual funds, money market funds, and other types of securities involve risk of loss. Loss of principal is possible. Some high risk investments may use leverage, which will accentuate gains & losses. Foreign investing involves special risks, including a greater volatility and political, economic and currency risks and differences in accounting methods.

A security’s or a firm’s past investment performance is not a guarantee or predictor of future investment performance.

Thoughtful Money and the Thoughtful Money logo are trademarks of Thoughtful Money LLC.

Copyright © 2025 Thoughtful Money LLC. All rights reserved.