High bar for Q3 earnings? The Investment Committee debates

• Q3 earnings numbers are largely expected to be met, but future guidance and the pace of earnings growth for 2024 are seen as critical and potentially 'dicey'.
• Tech sector CapEx plans are expected to remain intact, but concerns exist about the affordability of capital for AI and data center build-outs due to rising interest rates.
• The broader market's performance is viewed as misleading, with most stocks underperforming despite indices being near highs, indicating narrow leadership.
• High interest rates are impacting non-tech sectors like financials and industrials, and continued stabilization or decline in rates is needed for broader market performance.

The Investment Committee debates Q3 earnings expectations, with mixed views on whether the bar is too high. While current earnings numbers might be met, future guidance and the impact of high interest rates on various sectors, especially outside of tech, are key concerns. The market's narrow leadership is also highlighted as a potential risk.