Investors are always looking for clues about where the stock market is headed, and corporate earnings are one of the most significant indicators of stock market performance. While 2023 is shaping to be an exciting year for the economy and the market, it is important to consider the potential risks and scenarios that could impact corporate earnings growth.
In this episode, Rusty talks with Grant Engelbart, Senior Portfolio Manager at Brinker Capital Investment. Grant manages aggressive mutual funds and several ETF and mutual fund separate account strategies in his role. He also leads the alternative broad asset class team and serves on several committees across Brinker’s parent company, Orion Advisor Solutions.
Knowing the corporate earnings landscape in detail, Grant talks with Rusty about some potential scenarios and risks regarding corporate earnings in the year ahead, including the possibility of a recession, which is a top concern with many financial advisors and investors.
Key Takeaways
[02:35] - Grant’s professional background and what Brinker Capital does.
[05:12] - Grant's definition of risk.
[07:14] - The expectations for earnings growth in 2023.
[10:57] - The impact of a recession on corporate earnings.
[12:47] - What it takes to achieve positive earnings results.
[15:12] - How earnings and earnings expectations affect portfolio management.
[18:01] - Why margin should be considered in the coming year.
[23:24] - Grant's argument about the baseline for economic growth.
[29:03] - Other risks that investors should be aware of.
Quotes
[05:21] - "We've been defining risk in a very quantitative, measurable way. That makes sense when you're building a portfolio. But from a client perspective, risk is an investor not staying invested." ~ Grant Engelbart
[16:43] - "There's so much that people get caught up on - inflation, war, the Fed. But all these things impact the market in the short term. It is earnings that drive stock prices over the long-term." ~ Grant Engelbart
[29:10] - "The biggest risks aren't the ones that are telegraphed. It's not a recession risk that has been talked about for years. It's the lack of allocation in emerging markets and the inability to take advantage of the area that's growing." ~ Grant Engelbart
Links
Grant Engelbart on LinkedIn
Brinker Capital
Sirius by The Alan Parsons Project
CLS Investments
Orion Risk Intelligence
Orion Portfolio Solutions
Timothy Holland
Orion Ascent
Connect with our hosts
Rusty Vanneman
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Disclosure
Access to the services presented is provided solely as a service to financial advisors. Orion Risk Intelligence does not make recommendations or determine the suitability of any security or strategy. Past performance of a security or strategy does not guarantee future results. Orion Risk Intelligence research and tools are provided for informational purposes only. While the information is deemed reliable, Orion Risk Intelligence does not guarantee its accuracy, completeness, or suitability for any purpose, and makes no warranties with respect to the results to be obtained from its use.
2466-OAT-12/20/2022
