Eric Basmajian: Stock prices used to be a good leading indicator. Not anymore.
Prior to the 1990s, stock prices would decline before drops in earnings. At times, stock prices would anticipate a decline in earnings that would not materialize. But prices would generally lead earnings which slightly led the economy. pic.twitter.com/UcabAxQr6F — Eric Basmajian (@EPBResearch) January 14, 2025 Even in the mid-cycle slowdown of 2016, earnings declined for …