Traders on the floor of the New York Stock Exchange.
Earnings season begins with two major tailwinds: sky high prices and sky-high expectations.
On paper, second quarter earnings looks like the mother of all earnings reports, with estimates having risen steadily for the past six months, from expected 45% growth in January to 65% growth today compared to the same period last year.
It’s the strongest rate of growth since 2009, when earnings were just starting to recover from the disaster of the Great Financial Crisis.
But the gap between earnings expectations and the actual reported growth rates has been huge for nearly a year — and the market is beginning to (mistakenly)…