At the end of February, the S&P 500 stock index closed at a record high and the Nasdaq Composite (an index of hi-tech companies) briefly rose above 5000, the level last achieved in the dot.com bubble back in 2000.
But we may well be near the end of this stock market bonanza, six years after the S&P embarked on a bull run, resulting in a rally of 250%, including the reinvestment of dividends. Profits for US companies are expected to decline over two consecutive quarters for the first time in six years. Not since the aftermath of the financial crisis have S&P 500 companies recorded two straight quarters of falling profits on a year-over-year basis.
The profits of the S&P 500 multinational companies with significant global operations are now being pressured by a record high dollar, which results in lower foreign revenues. And energy companies have been hit hard by…
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