Analysts Predict Investors Poised For 'Once-In-A-Generation' Stock Market Opportunity: 'We See Profits Taking Off'

A significant investment opportunity in stocks is on the horizon, predicts investment firm Richard Bernstein Advisors (RBA). The firm foresees a surge in corporate profits across market sectors, presenting a rare chance for investors.

As per a Business Insider report, RBA dismissed fears of a looming recession, instead forecasting a healthy economy and accelerating corporate profits.

“Our view has been that the economy isn’t actually landing. Furthering the airplane metaphor, we see profits taking off …Corporate profits are accelerating and the overall economy looks set to remain quite healthy,” RBA stated.

As global stocks recover from a profit recession, RBA anticipates an acceleration in profits through 2023 and 2024. Leading indicators for U.S. corporate profits have also bottomed out, suggesting a momentum gain into the following year.

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Backing these trends is a robust economy, with an 8.5% GDP growth in the past quarter – the highest nominal growth rate since 2006. About 130 U.S. companies have already reported at least 25% earnings growth as of October, the RBA analysis revealed.

Despite the exception of the ‘Magnificent Seven’ tech giants which RBA deemed overvalued, the firm sees potential profit jumps in nearly every area of the stock market.

“Such narrow leadership seems totally unjustified and their extreme valuations suggest a once-in-a-generation investment opportunity in virtually anything other than those 7 stocks,” the firm said.

RBA’s bullish outlook for stocks counters the S&P 500’s third consecutive monthly loss in October, which was primarily due to rising bond yields and fears of sustained high-interest rates. However, signs of a swift equities rebound from the recent correction are emerging.

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