looking forward to the rest of the year earnings growth will depend heavily on receding inflation for margins and economic growth for revenue growth if this recent bull run is to remain intact since sector pricetobook valuations are highly correlated with expected returns equity prices in the second half will also depend on whether expectations for a rebound in earnings growth get met this has been a very good year for equities so far if you’d invested only in the nasdaq 100 you’d have had a record return for the first half of the year and that rally has broadened beyond just tech as it has gathered steam but as i laid out last week the market hasn’t really been tested by adverse circumstances