Upcoming Earnings Could Pour ‘Fuel on Fire’ for Stocks

Don’t pin your hopes for stock markets in the U.S. and Europe on first-quarter profit updates.

That’s the message from London & Capital’s Roger Jones, who argues that now is not the time to load up on risk assets. As investors prepare to shift their focus from macroeconomic drivers to earnings reports, they may do well to temper their expectations, he says. His position counters that of steadfast bulls who say profit momentum will help underpin equity markets going forward.