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Earnings are 'the key pillar' for markets right now

Truist co-chief investment officer and chief market strategist Keith Lerner joins Morning Brief to discuss earnings season, share his market outlook, and highlight key trends and opportunities for 2025. Lerner explains that forward earnings trends have been "the key pillar ... the most steady part of this bull market." With forward earnings estimates continuing to reach new highs and the current quarter's beat rate around 5% above expectations, Lerner remains confident in the market's bullish trajectory. According to Lerner, the only thing that has "shifted" is the broadening market performance, with 10 out of 11 sectors posting gains. He identifies promising sectors, including communications services, technology, mid caps, and financials. "It's not just one or two sectors that are driving this right now," he emphasizes, suggesting more diversified investment opportunities. Regarding potential policy impacts, Lerner notes that "markets are all about expectation and how things come in relative to expectation." He anticipates that if implemented, Trump's policies could "invoke volatility at some point." To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. This post was written by Angel Smith