Could Slumping Stock Market Be Signaling Bearish Outlook on America’s Political Prospects?

Stock prices reflect investor judgment about future earnings. Right now what the prices are saying is that investors are about 20 percent gloomier about future earnings prospects than they were at the end of 2021.

AP/Mary Altaffer
American flags fly outside the New York Stock Exchange September 23, 2022. AP/Mary Altaffer

The explanations being offered for the bear market in stocks are as many, and as varied, as the list of shares with recent 52-week lows.

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