11.11.2025

Markets don’t run on hype — they run on earnings.

Every market cycle has its story. Yesterday it was zero rates and stimulus. Today it’s artificial intelligence. Tomorrow it’ll be something else. But beneath the noise, one truth endures: profits move markets.

In the 2010s, U.S. corporate earnings grew 11% per year. In the 2020s, they’re still near 10% — twice the historical average. That’s not speculation, that’s execution.

Companies now do more with less: fewer workers, more automation; fewer factories, more cloud. Wall Street isn’t rising on hope — it’s rising on delivery.

But history reminds us: profits are the foundation, not the trigger. When confidence fades, even strong earnings can’t lift markets. For now though, the math still works — and profits keep playing the right tune.

Watch the video by John Plassard, Partner & Head of Investment Strategy at Cité Gestion!