2min chapter

The Compound and Friends cover image

Sentiment Rally

The Compound and Friends

CHAPTER

How Long Is the Correlation Between Corporate Earnings and GDP?

The emphasis on GDP is really misplaced because GDP growth don't always translate into corporate earnings growth. China and US are actually the two outliers where the GDP growth and the corporate earnings growth are in the same direction. So when you're choosing exposures, what framework are you using if not economic growth? Corporate earnings growth,.

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