We also discussed this issue on our quarterly investment outlook for our clients. Here is one of the charts:
As you can see S&P 500 earnings expectations have been at $145 since the end of September and we all know that tax reform was passed in the last week of December. At this point, analysts haven't even revised earnings estimates higher to account for the boost to net income which gets double impact from the tax cuts and then likely share buybacks. Even at $145, S&P earnings growth would be 15%. We could easily see $155 which would be 25%. This should push stocks higher and could be a repeat of 2017s great returns.