Insight: All About Earnings

As the summer burns on, markets seem ever so slightly calmer than earlier in this year.

That is until earnings hit...

Earnings sensitivity is as high as it has ever been as investors continue to navigate the most unique set of financial conditions in recent memory.

It seems almost every day markets are rocked by a surprising report... but this isn't a surprising time in the slightest.

Our readers may recall in our "23 in '23" research report we listed earnings, more specifically earnings compression, as the number one market moving factor for the year... and that scenario seems to be playing out perfectly.

We expected earnings to fall on a Y/Y basis and this has largely held true, with both Q2 and Q3 S&P500 earnings dropping over 5% from their respective year ago periods.

However, a drop in earnings was expected by almost everyone at the start of the year, and as a result, earnings beats are on the rise as softer expectations give companies more room to impress.

However...