Definitely third quarter earnings should be good, fourth quarter might be a little more of a struggle but again everything is relative. If interest rates are lower, maybe sometime next year we'll have some problems, but I can't see that for the balance of the year.
About this quote
- What does it mean?
- Near-term earnings look solid, but future risks exist if interest rates drop significantly later on.
- In plain terms
- Earnings are good now, but lower rates later could cause issues.
- What can you take from it?
- Current strength does not guarantee future stability.
Where it applies
Putting it to work
Questions to consider
- How do interest rates affect earnings?
- What makes a quarter a struggle?
Another view
Future economic conditions are impossible to predict with certainty.
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