Market Signals:  The earnings test is getting harder

Nick Schoenmaker  |  Portfolio Construction Forum  |  18 October 2026  |  0.25 CE

The latest corporate earnings season is revealing an increasingly important distinction between economic resilience and investment returns. American businesses continue to generate substantial profits, commercial lending is recovering, and artificial intelligence investment remains a powerful source of economic activity. Yet financial markets are becoming considerably more selective about what constitutes a good result.

The early reporting from major US banks illustrates the change. JPMorgan, Goldman Sachs and Citigroup have reported strong performa...

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