Analysts at Goldman Sachs have been wondering the exact same thing, and they believe that most of the easy money has already been made.
In a separate note, John Stoltzfus, the chief investment strategist at Oppenheimer Asset Management, also wrote about the excellent earnings season. According to Stolzfus, as of May 17 91% of firms on the S&P 500 had reported, and 86% of those companies had beaten analyst earnings estimates. In fact, across the 457 companies that had reported at that point, earnings were up 47% on revenue growth of 9.8%.
Meanwhile, the reopening trade is losing steam. According to Goldman Sachs, the pro-cyclical stocks that would most benefit from a reopening economy have already done well, with many recovering their pandemic losses and then some. Slowing growth, a reopening trade that's already priced in, and harder-to-beat earnings expectations combine into one clear picture of a more difficult investing environment for the rest of the year. Luckily, the Goldman Sachs analysts have a solution.
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