Slowing GDP and accelerating earnings is best for stocks

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Slowing GDP and accelerating earnings is best for stocks

According to analysts at Bank of America Securities, a best-case scenario for stocks involves slowing GDP and accelerating earnings growth.

"While GDP and the labor market seem to be slowing, earnings are accelerating ," notes BofA."Moreover, BofA's three quantitative models all suggest a strengthening upcycle in equities."97% done, the EPS has beat consensus by 3%, rising 7% year-on-year. BofA highlights that while the Magnificent 7 led the beat, the other 493 still delivered, with all 11 sectors except for Healthcare topping expectations.

 

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