As investors consider the Federal Reserve, foreign affairs and COVID concerns, U.S. Bank Wealth Management CIO Eric Freedman said he believes earnings remain the most significant driver of today’s markets on FOX Business’ “Mornings with Maria.”
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ERIC FREEDMAN: We think the driver of these markets continues to be earnings. Really the Wall Street estimates have just been too conservative throughout the course of this year. And we’re playing a bit of catchup. The last couple of earnings seasons have been positive, really driven by technology, but also now cyclicals. We still think that cyclicals have some bite left to them.
All the focus on the Fed, all the focus on foreign affairs, but really we think that earnings are the bottom line for this market.
We think the treadmill has probably been on about seven or eight and it probably slips down to a six. Still running at a decent pace and still seeing momentum, but we think that given how low-interest rates are, that people are willing to pay up for those earnings.
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