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Opinion
John Authers

The Slowdown Story Comes With an Ugly Ending for Stocks

Happy earnings projections simply won’t hold up if the narrative of an imminent contraction comes true. Asset allocators are increasingly favoring bonds.

Stubborn earnings optimism may be confronted with a harsh dose of reality.

Stubborn earnings optimism may be confronted with a harsh dose of reality.

Photographer: Michael Nagle/Bloomberg

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Markets run on narratives, and as the second half of the year begins there is a new story. But there’s still discomfort over whether the new narrative, which doesn’t have a happy ending, is really going to happen.