Stocks were down broadly this week as investors chase value over growth. There are plenty of factors that support that strategy. The conflict between the U.S. and Iran has intensified. Investors are finding it hard to look past the massive capital expenditure (CapEx) being poured into artificial intelligence. It’s also summer, which is historically a time when stocks make big moves on lighter volume.
On a brighter note, earnings season has been largely as advertised. According to FactSet, as of July 17, out of the 10% of S&P 500 companies that had reported, 88% reported a positive earnings per share (EPS) surprise and 85% reported a positive revenue surprise.
