The S&P 500 may sink to as low as 970 because analysts’ earnings estimates are too...

|By:, SA News Editor

The S&P 500 may sink to as low as 970 because analysts’ earnings estimates are too optimistic, MKM Partners' Michael Darda says. The 2012 forecast for company profits of ~$108/share may need to come down by as much as 30%, Darda believes, citing the history of U.S. business cycles and the relationship between bond yields and earnings.