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Company earnings in the spotlight
No question … company earnings have been impressive. The S&P 500 recorded the highest year-over-year earnings growth in over a decade in the second quarter. In fact, company earnings have been the key driver of index returns this year, accounting for the lion’s share of S&P 500 total return, as shown in the chart below. chart This leads some to worry that an earnings downshift in the quarters ahead will weigh on market performance. We remain optimistic in our medium-term outlook for U.S. stocks and would offer three considerations when it comes to the earnings outlook: This is not a normal cycle. The switch ... (full story)