Video by Fisher Investments via YouTube
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Fisher Investments’ Senior Vice President of Research, Aaron Anderson, discusses why he remains optimistic about a stock market recovery. Aaron acknowledges the economic challenges the market is facing, but thinks they are likely already reflected in equity prices. Given the duration of this downturn, Aaron believes the economic negatives are losing surprise power and there are more positives than investors appreciate—a dynamic that should support equity price growth looking forward.
Aaron also discusses upcoming Q3 2022 earnings. Investors widely believe earnings cuts are “the next shoe to drop”, but Aaron points out that earnings expectations have already come down materially. While companies are facing headwinds—such as higher interest rates, FX volatility and inventory issues—he says earnings could exceed generally dour expectations. For example, Aaron points to how company’s margins and sales have been fairly resilient despite these pressures.
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