I think this "risk" might be overstated

[Silver Ridge Market Report Logo] Dear Reader, Stocks fell last week, with the S&P 500 declining 3.4%. The index is now up 9.9% from its October 12 closing low of 3,577.03 and down 17.9% from its January 3 closing high of 4,796.56. We’ve talked recently about how analysts have been unusually bearish with their 2023 market predictions. More than half of the ones I’ve seen have been predicting the S&P 500 to close 2023 lower on the year. One commonly cited risk is the expectation that estimates for earnings would be revised down further from current levels. Because earnings are often viewed as the most important driver of stocks in the long run, this is could be a bit alarming. However, at least one top analyst argues these concerns are “overstated.” There are at least two things to consider. Knowing where earnings are going won’t help you First, the next year’s earnings growth rate won’t tell you much about what stock prices will do in the near-term. This is in line with the fact that valuations in one year tell you little about what stock prices will do in the next year. And while we’re talking about the perils of predicting the short-term, the past year’s stock market returns don’t tell you much about the next year’s returns, either. The market bottom might be in regardless Second, earnings have historically bottomed after stocks bottomed. In other words, we can’t rule out the possibility that the October low in the S&P 500 is a typical precursor to some eventual short-term low in earnings we have yet to learn about In summary, none of this is to suggest we can rule out the risk of stocks struggling in 2023. Rather, it’s just to caution against getting too confident about the prospect of stocks falling further, especially with prices down already. Editor, Silver Ridge Market Report Andrew Graham [A Graham Signature] P.S. [This could pay for your bills]( There’s a little-known financial loophole you can use to… Pay for your purchases from your favorite brands... Pay for your meals at your favorite restaurants... Pay to fill up your gas tank… And more. Even crazier, it only takes 3 seconds… [Click here to learn more.](   406 Media and Silver Ridge Market Report, is not giving individualized financial advice. Never invest more than you are willing to lose. 406 Media or Silver Ridge Market Report is not giving financial, investment, or stock advice. Our content is designed for generalized informational purposes only. If you have specific questions about investments or stocks you should consult a financial advisor. Articles, News, Or Other published materials are not always the views of 406 Media and/or Silver Ridge Market Report. If you feel you are receiving these emails in error please email Support@e1.profitraven.com or click the unsubscribe button below. Silver Ridge Market Report is now brought to you by ProfitRaven.com a thought leader in the financial publishing and alternative investment idea space. All rights reserved. Republishing Prohibited without expressed written consent of 406 Media, or their designated agent. 30 N Gould St, STE R, Sheridan WY 82801 This e-mail has been sent to {EMAIL}, [click here to unsubscribe](.