Earnings Outlook Makes State Street Nervous on Equities

The video discusses the impact of inflation and macroeconomic factors on company margins and earnings. It highlights current earnings strength despite inflation and consumer concerns, but warns of future margin pressures as the economy slows. The discussion also covers the mismatch between earnings expectations and equity performance, emphasizing the role of multiple compression and macroeconomic headwinds. The video concludes with concerns about the future equity outlook due to prolonged monetary policy effects.

What is the relationship between earnings expectations and equity market performance as discussed in the text?

What factors are contributing to the concern about equity outlook going forward?