Stocks care about nominal numbers like earnings

• Stocks prioritize nominal numbers, such as earnings and nominal GDP, over real (inflation-adjusted) GDP figures.
• An 8-10% nominal GDP growth is anticipated for the first half of the year.
• This nominal growth is expected to drive 8-10% earnings growth for the average company, which is considered a positive outlook.

The Chief Investment Officer of Horizon Investments argues that stocks primarily react to nominal numbers like earnings and nominal GDP growth, rather than real GDP. He projects 8-10% nominal GDP growth for the first half of the year, which he believes will lead to strong earnings growth for companies, deeming it 'pretty darn good'.