The current round of corporate earnings is proving to be one of the most successful in history with more than a third of blue chip companies having reported so far, Barclays analysts noted on Thursday.
The Fed expects the current spurt of inflation to be transitory and still sees considerable slack in the labor market, meaning policy is unlikely to be tightened in the immediate future.
“While Cyclicals are supported by strong earnings, we think valuations and positioning are now less favorable, which calls for a more balanced allocation vs.
David Marchant, CIO of Canada Life Asset Management, told CNBC on Thursday that the market may be underestimating the scale of the economic recovery and its potential impact on corporate earnings, given that companies have cut costs during the pandemic but will now begin to see sales start to rise.