Lumber prices show earnings growth set to grind to a halt

We’re in the third cyclical slowdown of the current economic expansion and its likely to be the broadest and deepest of them, Cornerstone Macro says on May 30. In that context, Wall Street analysts that are still predicting 11% EPS growth in 2020 need to get real. Lumber prices, seen as an ISM proxy and a favoured leading indicator at Cornerstone, are at a cyclical low. EPS estimates for 2020 will catch up with reality and fall to zero by the end of this year, they say.