Axonic Capital on Bloomberg TV: The Biggest Impacts on Earnings

Jul 17, 2021 | In the News

Bloomberg TV recently spoke with Axonic Capital Director of Research and Head of Market Strategy Peter Cecchini for insight on which factors will have the biggest impacts this earnings season.

“Beats in an environment like this mean an awful lot less than they would in a normal environment when companies actually have the ability to forecast,” explains Cecchini. “The beats rate right now for me is a little bit less relevant.”

Cecchini believes that more relevant questions this earnings season is what is going on with inflation and “can corporations pass inflation quickly enough through consumers and can consumers absorb it without demand elasticity hurting revenues.”

Turning his attention to the current state of the markets, Cecchini tells the network that he is not favorably disposed to small-caps. Instead, investors should consider adding technology to their portfolios for the short-term. “Technology is probably the best place to be right now where rates are today,” says Cecchini. However, if the Federal Reserve reacts to inflation in the near future, technology will likely suffer.

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