July 2022

Despite a horrible start to the year and all the talk about a recession, amazingly there is no “earnings recession.” The top-down strategists are completely out of sync with the boots on the ground analyst community, which is more positive. Frankly, the analyst community is smarter than the macro strategists that keep calling for a recession.

As always, we are entering the second-quarter announcement season “locked and loaded” with strong forecasted sales and earnings. Furthermore, in the past three months, the analyst community has revised their average consensus earnings estimate significantly higher, so we are expecting another round of earnings surprises in the upcoming weeks. Here is a link on that shows our forecasted sales and earnings:

Sales and Earnings Projections

Our strong forecasted sales and earnings are the good news. The bad news is the stock market made a new low on June 16th based on higher market interest rates and inflation fears. However, since June 16th …