3 July 2023
Gloomy outlook for profit margins as inflation cools and growth slows, warns JPMorgan strategist. Earnings expectations lack optimism for the rest of the year, despite resilient second-quarter performance. Mounting signs indicate the recent equity surge may not be sustainable, with downgrades outnumbering upgrades and projections of a sharper decline in earnings. Caution urged as market sentiment shifts and risk increases, leaving investors with no safety net. FOMO (Fear of Missing Out) drives the current state of affairs.