Morgan Stanley's Wilson: Earnings Declines Aren't Over

The video discusses recent market trends, highlighting a pattern where the market anticipates earnings declines before they are reported, leading to relief rallies. It also explains the concept of negative operating leverage, where revenue growth slows but earnings decline more sharply. This is particularly evident in the tech sector due to overinvestment. The speaker suggests that while some believe the worst is over, they anticipate further challenges ahead.

What is the current trend in earnings according to the speaker?

Explain the concept of negative operating leverage as described in the text.

How did the pandemic affect operating leverage for companies?

What evidence does the speaker provide regarding the decline in earnings growth?

What is the speaker's outlook on the future of earnings for most companies?