Paranoia Was Already Running Deep in Stocks Before Trade War Hit
- Equity investors were already worried over earnings, multiples
- Many professional investors were keeping away from the rally
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A re-erupting trade war is casting a brighter light on the rough terrain investors have been traveling all year.
Alongside the biggest rally since 1987, analysts have been cutting earnings estimates. Valuations that shrunk in the fourth-quarter meltdown have all but reinflated, amid middling growth forecasts.