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Language Notification

Please be advised that future verbal and written communications from the bank may be in English only. These communications may include, but are not limited to, account agreements, statements and disclosures, changes in terms or fees; or any servicing of your account.

Por favor, tenga en cuenta que es posible que las comunicaciones futuras del banco, ya sean verbales o escritas, sean únicamente en inglés. Estas comunicaciones podrían incluir, entre otras, contratos de cuentas, estados de cuenta y divulgaciones, así como cambios en términos o cargos o cualquier tipo de servicio para su cuenta.

Informamos que as futuras comunicações do banco, verbais e escritas, podem estar disponíveis apenas em inglês. Essas comunicações podem incluir, entre outras, acordos de conta, extratos de conta e divulgações, alterações aos termos ou tarifas, ou qualquer tipo de serviço pertinente à sua conta.

仅此通知,本行即日起发出的口头及书面通信可能将只提供英文版本。这些通信可能包括但不限于账户协议,账单和通知,条款或费用变更;或任何为您账户提供的服务。

Please be advised that future verbal and written communications from the bank may be in English only. These communications may include, but are not limited to, account agreements, statements and disclosures, changes in terms or fees; or any servicing of your account.

Por favor, tenga en cuenta que es posible que las comunicaciones futuras del banco, ya sean verbales o escritas, sean únicamente en inglés. Estas comunicaciones podrían incluir, entre otras, contratos de cuentas, estados de cuenta y divulgaciones, así como cambios en términos o cargos o cualquier tipo de servicio para su cuenta.

Informamos que as futuras comunicações do banco, verbais e escritas, podem estar disponíveis apenas em inglês. Essas comunicações podem incluir, entre outras, acordos de conta, extratos de conta e divulgações, alterações aos termos ou tarifas, ou qualquer tipo de serviço pertinente à sua conta.

仅此通知,本行即日起发出的口头及书面通信可能将只提供英文版本。这些通信可能包括但不限于账户协议,账单和通知,条款或费用变更;或任何为您账户提供的服务。

Earnings-matter-but-this-earnings-season-may-be-outshined

Perspectives

Earnings matter, but this earnings season may be outshined

Author

By Joe Fiorica, Investment Strategist

October 8, 2020Posted InFixed Income, Investment Strategy and Equities

  • Q3 earnings season unofficially begins on October 13 with a few of the big US banks, while the bulk of reporting is due over the course of the next 4 weeks.

 

  • While we expect year-over-year profits growth will be deeply negative, especially for more COVID-impacted sectors, we believe Q3 marked the beginning of a profits recovery as economies emerged from lockdowns and learned to live with the realities of pandemic restrictions. US profits should continue to recover further into next year, ultimately returning to pre-COVID levels in the first half of 2022.  

 

  • We continue to recommend a tactical rotation into more economically-sensitive sectors and regions as we look towards 2021. With that said, we expect that catalysts for any medium-term rotation will coincide with key events like the announcement of an effective vaccine or the reduction of political risks, not necessarily from any surprises emerging from this earnings season. 

 

  • Core portfolios should remain diversified, retaining exposure to firms with solid earnings fundamentals. We continue to expect long-run outperformance in areas like digitization, health care innovation, and clean energy, while allocations to dividend growers can provide exposure to high-quality income generating equities
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