The Stock Market Has an Earnings Quality Problem -- and It Can't Be Ignored Any Longer
A dollar in corporate profit isn't always what it's cracked up to be.
Since 2023 began, Wall Street's major stock indexes have been practically unstoppable. The ageless Dow Jones Industrial Average, benchmark S&P 500 (SNPINDEX: ^GSPC), and growth-powered Nasdaq Composite have ascended to numerous record-closing highs.
Investors haven't hurt for catalysts, with a laundry list of positives responsible for perpetuating this more than two-year rally. This includes the rise of artificial intelligence (AI), Donald Trump's election night victory (all three stock indexes soared during his first term in the White House), and better-than-expected corporate earnings, to name a few key variables.
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