In this month’s update, JP reviews what’s behind the U.S. market’s rebound from recent conflict-related lows and the question businesses must answer to justify elevated stock prices. He discusses the divide in earnings expectations between U.S. and European stock indexes, how higher oil prices have a downstream effect on companies and consumers, and a short-term (for now) reversal performance between growth and value stocks.

Against this backdrop, JP explores how the focus may shift from momentum back to fundamentals. With the Federal Reserve likely pushing interest-rate cuts out to mid-2027, higher global input costs due to energy inflation, and potentially higher borrowing costs, companies are finding themselves in a more challenging environment.