SLT Research's avatar
$17.7m follower assets
Wall of Worries
Company executives are getting much more worried about economic growth, judging by their earnings conference calls and Bloomberg projections.

Executives and analysts are on track to use phrases related to an economic slowdown three
times more on second-quarter calls than they did during first-quarter results, according to a Bloomberg analysis of transcripts for companies in the S&P 500, the Nasdaq 100 and the Stoxx Europe 600 indexes.

A Bank of America Corp. tracker also showed corporate sentiment during earnings
calls has plummeted even as analysts are still expecting earnings growth to accelerate into next year.
Eric Messenger's avatar
Interesting. My brother works in a little town in Ohio for a company called Adalete. They’re a Scott Fetzer company; a group of 30+ individual businesses. The Scott Fetzer company is owned by Berkshire Hathaway. They make electrical closures for general & hazardous locations. He’s only been there about 6 months, but the company has broken revenue records two consecutive months now. The electrical enclosures they make are for industrial/commercial applications; doesn’t seem to fit the recession narrative.

I don’t base any of my investing decisions on macro issues or recession fears. But it is going to be interesting to watch this live. To see if this points to a real recession; or if it’s just due to Covid, supply chain issues, and a major market correction (hat was long overdue), making things appear as if a recession is coming. I wasn’t alive yet in the 70s the last time we saw inflation anywhere near where it’s at today. So I would imagine this is a new situation for a lot of us. Lessons to learn in real time👍