Kyle Rodda, senior financial market analyst at Capital.com, highlighted that heavy corporate profits have propelled Wall Street to fresh record highs even as geopolitical tensions and policy uncertainty persist.
He argues markets are pricing a peaceful outcome to the Middle East war, a Federal Reserve that will largely look through an energy shock rather than respond with aggressive hikes, and earnings growth likely in the high teens this quarter with guidance above 20%.
That's a mix that can justify continued equity buying, he reckons, with a not insignificant caveat, that the impending energy shock could proves bigger, more persistent and could change the outlook.
