The opportunity is in earnings surviving the rates shock, not in pretending that shock doesn’t matter.
There’s a temptation to reduce this market to one argument… Yields are rising, so stocks should fall….
I think that misses the actual contest. Higher yields make future profits worth less today. But what happens if those profits keep growing, or the econs’ expectations adjust with the earnings
Yes, my dashboards show a heavier policy hurdle and narrower leadership, but not a uniform retreat into defensives. That tension is where I’m working: an economy that can still deliver, against a much tougher financing backdrop.
