Future focus will be on corporate earnings in the coming weeks🫡
Looking ahead, the next few weeks will be all about corporate earnings, with banks and financials kicking things off this week. The focus will be on the adjustments to their loan provisions, as well as forward guidance of what the impact of higher rates and post-SVB regulation costs would have on their portfolios. Regardless, the stage feels to be set for an 'all clear' rally with stocks vulnerable to capitulation-squeeze over the summer, with visions of the late-stage 1997-99 rally being brought up as a possible comparison, with notable similarities in the Fed cycle and investment narrative of today's AI revolution being compared to the early dot-com euphoria.
