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Commentary
With the latest earnings season now wrapped up, The Wall Street Journal reported the S&P 500’s second-quarter earnings soared 53%, and sales rose 16%. Tariff refunds apparently helped boost this robust rate of earnings growth, but no matter how you analyze it, earnings momentum peaked in the second quarter and will likely decelerate in upcoming quarters. But there’s no reason to panic, as the S&P 500’s earnings growth should still be around a 30% annual pace and price-to-earnings (P/E) ratios will remain under compression. In my opinion, the stock market remains grossly undervalued relative to the bond market….
With the latest earnings season now wrapped up, The Wall Street Journal reported the S&P 500’s second-quarter earnings soared 53%, and sales rose 16%. Tariff refunds apparently helped boost this robust rate of earnings growth, but no matter how you analyze it, earnings momentum peaked in the second quarter and will likely decelerate in upcoming quarters. But there’s no reason to panic, as the S&P 500’s earnings growth should still be around a 30% annual pace and price-to-earnings (P/E) ratios will remain under compression. In my opinion, the stock market remains grossly undervalued relative to the bond market….
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