Hi Reader, here's what you need to know for April 14th in 3:08 minutes.

🌍 This is your world, major companies just live in it. So join the former UK CEO of UBS Wealth Jamie Broderick for How To Become An Impact Investor on Thursday, and find out how you can make them play by your rules – not the other way round. Get your ticket here

Today's big stories

Analysts are expecting US companies to report their highest quarterly earnings growth in a decade
There's a big threat to your portfolio on the way, and it isn't inflation – Read Now
Investors are worried the US Federal Reserve will do something hasty after the inflation rate hit its highest in eight years last month

Great Scott!

What’s Going On Here?

Analysts are expecting US earnings to have grown by the most in a decade last quarter, as American companies leave 2020 in the rear-view and finally get back to the future.

What Does This Mean?

It’s that time of year when investors find out how companies have been performing, and they’re expecting big things: analysts have raised their estimates for US firms’ earnings growth by 6% over the last three months. That record increase – more surprising considering analysts usually lower their expectations – could be because they slashed their earnings forecasts by too much at the height of the pandemic, or just because they’ve seen upward-trending economic growth expectations and adjusted accordingly.

Either way, US companies are forecast to have grown their earnings by 25% on average last quarter – way above the 4% average of the past five years (tweet this). Throw in the fact that most companies tend to underpromise and overdeliver anyway, and earnings growth will probably reach at least 28% – the highest in more than 10 years.

Why Should I Care?

Zooming in: All bets, please.
Investors reckon companies in the consumer discretionary sector – i.e. sellers of nice-to-haves, like carmakers and luxury goods companies – will post the biggest boost to earnings. Shoppers, after all, have needed something to spend their money on. Financial companies are projected to come in a close second, while energy companies and industrials – especially airlines – are expected to see their earnings drop.

For markets: Look for the underdogs.
Investors’ main aim during earnings season is to back companies that’ll beat expectations, but between sky-high share prices and ever-climbing growth forecasts, that’s easier said than done. Still, consumer staples and utilities firms seem like a good place to start: not only are they the worst-performing US sectors this year, but analysts haven’t adjusted their expectations of them lately – making them the most likely to do something genuinely surprising.

You might also like: Two ways to trade this one-of-a-kind earnings season.

Copy to share story: https://www.finimize.com/wp/news/great-scott-2/

🙋 Ask a question

2. Analyst Take

Is This The Next Big Threat To Your Portfolio?

What’s Going On Here?

The massive US recovery plan is the talk of the town right now, and investors seem pretty enthusiastic about it.

But with the ratio of US public debt to the size of its economy already at an all-time high, one question looms large: where exactly is all this cash going to come from?

The answer, it might not surprise you to hear, includes higher taxes.

Goldman Sachs even estimates that one mooted plan could reduce earnings of S&P 500 stocks by 9% on average next year – with a particular impact on the tech and healthcare sectors.

At best, that could drive investors to take profits off the table. At worst, it could lead to a stock market correction.

So that’s today’s Insight: what higher taxes might mean for your portfolio, and three simple things you can do to protect yourself.

Read or listen to the Insight here

So you want to get into CFD trading

There’s no better place to do it than with Libertex.

Libertex’s simple but advanced platform offers a user-friendly interface, top-notch trading tools, and high-tech security protocols.

You can deposit and withdraw cash instantly, fee free, and with any payment method, plus benefit from a host of perks including VIP sponsorship experiences with Valencia CF and Tottenham FC.

With 23 years in the market, 250 trading assets on offer, 2.9 million clients worldwide, 120 countries covered, and 40 international awards, Libertex provides the best possible trading platform for anyone to #tradeformore.

Get your CFD trading off to the right start: get started with Libertex today.

Get Started

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Please support our sponsors