Brexit, Strong Dollar, Energy To Wipe Out Billions In Earnings

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Rupert Hargreaves
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Bank of America is anxious about the effects Brexit will have on corporate America and, as a result, the bank has downgraded its S&P 500 earnings forecast for 2016 and 2017. BoA believes that following the UK referendum global real GDP growth will slow to 3% year-on-year for 2016, down from 3.1% in 2016. US GDP real GDP growth is expected to fall 0.5% to 1.9% year-on-year for 2016 and to 1.8% year-on-year for 2017. Also, a stronger dollar, driven by safe haven flows will also work to curb earnings growth. After a tailwind of four percentage points during 2016,…

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk