Further upside for equity earnings

J.P. Morgan Asset Management ‘Global Asset Allocation Views’ – Q4 2021

The upward grind of stocks in this most unusual of summers ran counter to the “Sell in May and go away” maxim: On average over the last 50 years, the S&P returned 1.7% between May and September, and 7.3% from September to the following May. A summer rally does have precedent, but the record number of new highs — against the backdrop of monetary policy uncertainties, Chinese regulatory change and the ebb and flow of coronavirus statistics — certainly bears scrutiny.

Equity earnings

We continue to expect above-trend growth through the end of 2022 and see further upside for equity earnings as …