Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Benzinga is covering every angle of how the coronavirus affects the financial world. For daily updates, sign up for our coronavirus newsletter.
For the first time since the 2008 financial crisis, corporate earnings could turn negative, according to PNC Financial's Amanda Agati.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
What Happened
Corporate earnings for the first quarter are set to kick off on April 14 and shouldn't be considered "the right guide" for any coronavirus recovery, Agati said on CNBC's "Trading Nation." The virus started to pick up momentum late in the first quarter so the second quarter will likely be "the better gauge for where we go from here."
Heading into 2020, consensus estimates called for S&P 500 earnings to grow by 10% for the year, according to Agati. The figure has since been slashed in half, but Agati expects further reductions to earnings growth.
So far, the Street is expecting first-quarter earnings to be "negative territory at about 1.5%," followed by "Q2 will be down about 1%," she said.
FREE REPORT: How To Learn Options Trading Fast
In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.
Why It's Important
Meanwhile, valuations have also fallen from February when the S&P 500 index was trading at 19 times forward P/E to just under 14 at current levels, she said.
"We're not viewing valuation as a very good gauge or timing tool for relative attractiveness," she said. "It's all going to come down to the earnings backdrop."
Investors hoping for any sort of encouraging sign moving forward may be disappointed. The market has shown "tremendous multiple contraction over a very short span of time," she said. Before being buyers, the Volatility Index needs to "settle down" as it's a "reflector of fear and uncertainty."
Related Links:
Coronavirus Crash Sends Investors To Short Funds, Says AdvisorShares CEO
The Week Ahead In Biotech: Bristol-Myers, Rockwell Medical Await FDA Decisions
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.