The Tell: Since 1989, there have been 15 times when the stock market rallied when earnings expectations declined

The market can go up even when earnings expectations go down.

Obviously, one way for stocks to appreciate is for companies to see earnings climb. That’s why investors generally, though not always, cheer good economic news and profit announcements.

But it’s not always the case that stocks fall when earnings expectations decline. Analysts at Citi in fact found that, since 1989, there have been 15 years when the global stock market (as measured by the MSCI World 892400, -0.02% index) has climbed when the change in earnings per share forecast has been negative.

So far, 2019 has been one of those years.

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