Rising earnings, accommodative Fed are ingredients for bull market: Zoe Financial CEO

Summary

Andres Garcia-Amaya of Zoe Financial argues the current equity rally is supported by strong earnings growth, accommodative monetary policy, and resilient or re-accelerating economic growth. He is positive on US equities but sees Europe and international equities as offering an even better entry point because valuations are cheaper, earnings growth has inflected, and expectations are lower. He flags the labor market as a key risk to watch.

• US stocks are near records and the guest sees supportive earnings, Fed, and economic ingredients.
• Guest says earnings growth is broadening beyond the Mag Seven, a potential new driver.
• Guest says the Fed is not an issue and could cut once or twice more.
• Guest says the economy has held up and may be re-accelerating.
• International and European equities have similar positives plus cheaper valuations.
• International earnings growth inflected last year, with muted expectations and a lower bar to beat.
• Labor market weakness is flagged as a risk to the bull case.