Pathlight President, Adrian Larson, discuses the changing global economic environment and sets our attention to the upcoming 3Q18 earnings reporting season to see what the actual companies think.
Acknowledging the changes
We would be remiss if we did not point out that there have begun to be cracks in the long-held narrative of synchronized global growth, low interest rates, and zero inflation. In fact, we have seen 10-year treasury rates rise in 2018 from roughly 2.4% to 3.3%, China and other emerging economies slow, and inflation in the U.S begin to ratchet up.
Earnings reports are coming
We have entered the third quarter 2018 earnings season, so the timing to hear from actual companies couldn’t be better. We will get reports from large financial institutions like JP Morgan, Citigroup and Wells Fargo on Friday, October 12. We want to hear what companies are thinking before making allocation changes because S&P 500 companies are still forecast to post 21.5% year-over-year earnings growth and 7.4% revenue growth. Great numbers by any measure. See the link below for full 3Q18 earnings details.
S&P 500 Earnings Dashboard | Oct. 5
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