Global stocks have rallied since the start of 2019, after posting the steepest decline since 2008 last year. This hasn’t lifted the gloom over the current earnings season. Analysts have aggressively cut their forecasts, yet we see some potential for more earnings downgrades. This argues for more carefully balancing risk and reward in portfolios.
Chart of the week
Global stock performance and earnings revisions ratio, 1998-2019
Past performance is not a reliable indicator of current or future results. It is not possible to invest directly in an index.
Sources: BlackRock Investment Institute, with data from