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The big risk to equities now is earnings, not valuations

Investors have probably seen only the first phase of this bear market in stocks

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Published Sat, Jun 25, 2022 · 05:50 AM
    • The next leg of the bear market is likely to be driven by earnings recessions, especially in the more cyclical stocks, sectors, and markets.
    • The next leg of the bear market is likely to be driven by earnings recessions, especially in the more cyclical stocks, sectors, and markets. Bloomberg

    Ian Harnett

    AS GLOBAL equities go deeper into bear market territory, it is important to recognise the unusual nature of this sell-off.

    The pain so far has come largely from a contraction on the valuation placed on the more expensive stocks and their earnings prospects. This means we have probably only seen the first phase of this bear market.

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