Equities have rallied strongly and are the standout performers of 2026 so far. Most other asset classes, by contrast, have either retreated or are treading water.
The strong returns have been underpinned by the extraordinary strength of corporate earnings. The S&P 500 is now heading for a seventh consecutive quarter of double-digit earnings growth, while global equity earnings are forecast to rise by more than 30% over the year ahead.
However, are we entering a renewed Goldilocks world – one in which there is enough growth to support earnings, but not enough to trigger material interest-rate rises?
Guy Monson considers the evidence and what this could mean for client portfolios in the months ahead.
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