Richard Bernstein Advisors (RBA) predicts a unique investment opportunity in stocks due to an anticipated surge in corporate profits across various sectors, dispelling concerns of a hard landing or recession. RBA foresees earnings to accelerate by the end of 2023 and into 2024, with S&P 500 earnings expected to grow by 10%-15%.
The robust economy, boasting 8.5% nominal GDP growth in the past quarter, has already begun positively impacting corporate earnings, with numerous U.S. firms reporting substantial earnings growth.
RBA suggests that profits could rise in nearly every stock market segment, excluding a select group of overvalued mega-cap tech giants. Despite recent market fluctuations driven by surging bond yields and interest rate fears, other forecasters remain bullish on stocks through the year-end.
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