January 15, 2024 | Typically when rates are cut, earnings expectations are reduced by approximately ~20%.
Why It Matters: If we do see an accommodative Fed, it’s important to remember that rate cuts usually happen for a reason – often when companies are facing tougher times.
Source: dailychartbook
...August 21, 2023 | U.S. businesses beat expectations, posting strong profits, even with higher interest rates and lower consumer confidence.
Why It Matters: Despite solid earnings, stocks aren’t reflecting it. Global growth fears are overshadowing corporate performance.
Source: axios, dailychartbook
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