With the start of the 3rd quarter under way, it's customary for us to provide our readers and clients with our Look Ahead.
Here are a few key themes:
Earnings are poised to start recovering in Q3 after a long drought of earnings growth, and delayed expectations.
However, much of the anticipated recovery is dependent on a weaker U.S. dollar as much of large U.S. corporate earnings come from exports. Further, oil prices stabilizing around $50/bbl. will also help earnings.
What will keep our dollar low? Managing the policy driven world coordinated by Central Banks and our Fed, who are providing policy guidance that will keep rates lower for longer.
As all this relates to Q3 GDP; the NowCasts are calling for stronger growth reports in Q2 and in Q3 than was in Q1.
To get a quick review of our strategy recommendations for Q3 click here for our Look Ahead.
If you have questions or comments, please let us know as we always appreciate your feedback. You can get in touch with us via Twitter, Facebook, or you can email me directly. For additional information on this, please visit our website.
Tim Phillips, CEO – Phillips & Company
Chris Porter, Senior Investment Analyst – Phillips & Company
