1.Earnings Recession Does Not Necessarily Mean Economic Recession
The idea is that an earnings recession would lead to a conventional economic downturn, with rising unemployment, falling consumption and even broader downward pressure on profits — but that’s not actually true, Belski said in an interview.
Indeed, an earnings recession has happened six times since 1987 — but a real recession has followed only twice, Belski said. That alone should mitigate any fears that an earnings slowdown would come back to bite the market, he said.
Furthermore, when earnings downturns happen and economic recessions don’t follow, the S&P has risen an average of 17.6% over the next year, he said, citing the five times this has happened since 1967
Opinion: What ever happened to that earnings recession?By Tim Mullaney
https://www.marketwatch.com/story/what-ever-happened-to-that-earnings-recession-2019-02-27