“There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things.” – Niccolò Machiavelli, Italian Renaissance political philosopher and statesman
The Through Line: Expectations were high coming into the Q3 reporting season – and companies met them (for the most part). The problem, however, is that recent quarters have trained investors to want OH. SO. MUCH. MORE. Despite aggregate earnings growth of nearly 30%, many stock-market averages struggled, reflecting attempts by investors to shape a consistent storyline. Threads woven throughout individual company and industry commentary hint that the economic recasting we’ve been anticipating is underway. Recently reported statistics, including above-trend GDP and productivity, support this view. We break down key insights from the quarter and what they can teach us about the path ahead.
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