Tatton Asset Management sees earnings growth supporting equities
SPY•Tatton Asset Management expects earnings growth to support equities, while tighter liquidity raises near-term volatility risks. It cited UK GDP growth of 0.7% in the three months through September, its fastest quarterly expansion since 2024.
1. Earnings and equities
Tatton Asset Management expects earnings growth to support equities, though tighter liquidity raises near-term volatility risks. It said global earnings growth is increasingly driven by revenue, while higher real government bond yields limit price-to-earnings valuation gains; yields are not expected to rise much further.
2. UK economic outlook
UK GDP grew 0.7% in the three months through September, its fastest quarterly expansion since 2024, powered by business investment. Tatton said AI-related investment could support UK service exports, but the current account deficit has yet to narrow.
