Another day, another volatile trading session.
The S&P 500 failed to stay in the green and fell into correction territory on Monday — for the first time since April 2. It’s now shaping up to be the index’s worst month since 2009.
However, that’s not pushing long-term bull Richard Bernstein into bear territory.
Bernstein, an Institutional Investor hall of famer, partly attributes the wild market swings due to a growing divide between investor fear versus corporate and economic fundamentals.
“That gap is very wide now,” the Richard Bernstein Advisors CEO said Monday on CNBC’s “Trading Nation. ” “It’s clear that investors are very scared that somehow we’re replaying 2008. But, yet the fundamentals still are very healthy.”
So far this earnings season, nearly 8 in 10 companies have reported better-than-expected earnings. According to Refinitiv, that’s 26.3 percent higher versus third quarter 2017.
Bernstein, a CNBC contributor, cites strong earnings as a major element of his bullish forecast. But, more and more people are interpreting it as warning signal that peak earnings is here.