A stock generally moves on investors’ expectations of future earnings.

And those earnings during this reporting season will show significant deceleration across most sectors.

That’s because last year during the first quarter, and especially during the second quarter, saw a free-for-all of fiscal and monetary stimulus, and consumer demand that pushed corporate profit growth to stratospheric levels that we may never see again in our lifetimes.

But those days are gone and the question becomes how well will investors tolerate their favourite companies saying that growth has meaningfully slowed.

And pity the company that misses its numbers and issues a weak forecast.

In this conversation with John O’Connell, we examine that dynamic and how things may play out.


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