Plunging Stock Market

 

FOR EDUCATION ONLY

 

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I have subscribed and followed Gregory Mannarino’s stock market analyses, and believe the stock market will crash with a starting plunge this April 2020.

“The trend is your friend” and “never pick a falling knife” are household terminology in financial markets.  The stock market is trending down despite three consecutive advances this week, which cannot break the trend.

The market moves in anticipation of earnings per share (EPS), and we expect declining EPS this first quarter, unless companies engage in creative accounting or cook the books.   Many experts attribute to the coronavirus the current economic contraction, though other factors may explain it.

Corporate buybacks may mitigate EPS.  The next video explains how Corporate Buybacks effect EPS.

 

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