The US Q2 earning season is upon us.
While the US economy is improving (and was improving last year) this time there is a difference.
Last year before the earning season, the earning forecast were constantly downgraded, while the general US index was going up.
This was the perfect environment, specially for generalist ultra-cheap Exchange Traded Fund holders.
This season instead the analysts have upgraded the forecasts, while the index was going down.
So there is much more room for error. This environment is perfect for active management (and a very few smart beta ETF) as there will be clear winners and clear losers.
Another change in the market.
investorpolitico 