You may have heard the expression, “You can talk yourself into just about anything.” If that’s true, corporate America better watch out.
As publicly traded companies report quarterly sales and earnings, they often review critical economic conditions. Last quarter, nearly 50% of the S&P 500 companies mentioned the term “recession” during their Q2 conference calls with shareholders, according to FactSet. This breaks the previous record set in Q1 2020, at the start of the pandemic.
Unsurprisingly, America’s corporate leaders are preparing for potential economic turbulence. After all, we often see volatility in the financial markets when economic reports raise questions about recession and the Fed’s policies. Words are powerful.
This time next year, the buzzword of the quarter could be something else entirely. Here’s hoping for something like “recovery,” “rebound,” or “growth.”
The S&P 500 Composite Index is an unmanaged index that is considered representative of the overall U.S. stock market. Index performance is not indicative of the past performance of a particular investment. Past performance does not guarantee future results. Individuals cannot invest directly in an index. The return and principal value of stock prices will fluctuate as market conditions change. And shares, when sold, may be worth more or less than their original cost.
The CEO's Unofficial Q2 Buzzword
September 19, 2022