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Earnings risks and four-step process

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Monday's decline put the market back at step one of our four-step bottoming process. S&P 500 EPS could decline 11% if the COVID-19 impact continues through Q2, and -24% if deep into 2H. P/Es tend to rise early in bull markets because the stock market bottoms before the economy and earnings.

Ned Davis Research | Equities | U.S. Focus | Weekly

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