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The US stock market’s been flying high, but has it earned it?

As the second quarter US reporting season gets into full swing, it’s easy to lose sight of the big picture: the peak-to-trough drawdown in earnings per share (EPS) from last year has not only been smaller than typically seen in an economic downturn, but it is also starting to be unwound. The implication is that investors aren’t braced for even a mild recession.

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