Closing Q2 Earnings Season: Looking Ahead

Q2 Earnings season has been strong, with sales and earnings growth accelerating and broadening across sectors. However, companies' results and commentaries are stoking some concerns. GAI monetization will take longer than most investors expect. Companies are also reporting that lower- and middle-income US consumers are strapped. We recommend defensive positioning, as solid earnings growth is insufficient to rule out a recession later this year.