Question

Are corporate earnings expected to keep growing at this rate over the next year? Why or...

Are corporate earnings expected to keep growing at this rate over the next year? Why or why not?

Homework Answers

Answer #1

Well i think this is very open ended question and it doest not have any single answer. There are various parameters which we need to see before jumping into the conclusion.

For example: when we say corporate earnings, we need to look at which industry, which country etc we are talking about. For instance: Let us say that In India, IT and manufacturing are booming right now, so corporate earnings in those sectors will go up. But at the same time, these sectors are not doing good in Europe. So Europe will not see that growth.

So there are various parameters which go into the picture to make it more clear.

But overall if we talk, various fundamentals like world economic growth, global trade etc are on rise. So at very high level, we can say that global corporate earnings are expected to grow in next year

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