A man stands next to a bank’s electronic board showing the Hang Seng Index in Hong Kong on July 21. Markets’ forward-looking nature means they have been able to move well ahead of the real economy to price in an expected recovery in corporate profits. But are they right? Photo: AP A man stands next to a bank’s electronic board showing the Hang Seng Index in Hong Kong on July 21. Markets’ forward-looking nature means they have been able to move well ahead of the real economy to price in an expected recovery in corporate profits. But are they right? Photo: AP
A man stands next to a bank’s electronic board showing the Hang Seng Index in Hong Kong on July 21. Markets’ forward-looking nature means they have been able to move well ahead of the real economy to price in an expected recovery in corporate profits. But are they right? Photo: AP
Patrik Schowitz
Opinion

Opinion

Macroscope by Patrik Schowitz

Earnings season will tell if stock market optimism is justified

  • Most market watchers predict a drop and bounce-back in profits sharp enough to be called V-shaped. If they are right, the reporting of second-quarter company earnings now under way should reflect a turning point in global profits downturn

A man stands next to a bank’s electronic board showing the Hang Seng Index in Hong Kong on July 21. Markets’ forward-looking nature means they have been able to move well ahead of the real economy to price in an expected recovery in corporate profits. But are they right? Photo: AP A man stands next to a bank’s electronic board showing the Hang Seng Index in Hong Kong on July 21. Markets’ forward-looking nature means they have been able to move well ahead of the real economy to price in an expected recovery in corporate profits. But are they right? Photo: AP
A man stands next to a bank’s electronic board showing the Hang Seng Index in Hong Kong on July 21. Markets’ forward-looking nature means they have been able to move well ahead of the real economy to price in an expected recovery in corporate profits. But are they right? Photo: AP
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Patrik Schowitz

Patrik Schowitz

Patrik Schowitz is a global multi-asset strategist at JP Morgan Asset Management.