When the going gets tough, it is OK to go slow and watch your footing. You don’t want to fall and roll down the mountain. You keep hearing about how this is the bull market people love to hate. When I hear that, I just have to shake my head. The S&P is the same as it was 19 months ago. I don’t like the value. People say earnings will grow because they’re coming off a relatively low base. The guess for 2017 is 15% earnings growth. But how in the world can earnings go up if nominal GDP is rising by less than wages? Profit margins must be squeezed. I’m not so sure that we’ll get some big bounce in earnings, particularly after Brexit.
