The strength and resilience of US employment, and the growing sense a recession has been dodged, hides fundamental imbalance: if consumers are too broke to consume, then how are corporate earnings set to rise? Doh!
Inflation will dominate the headlines while the US earnings season kicks off. The prospects for stocks on the back of falling numbers and crashing consumer sentiment bode ill for recovery, and strongly suggest there is further market downside to come in Q3.
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