Core Viewpoint - The upcoming earnings season is critical for sustaining the current bull market, with a focus on commentary regarding 2026 and structural opportunities rather than just Q3 numbers [2][3][5] Earnings Outlook - Q3 reports will emphasize commentary on future earnings potential, particularly for 2026, rather than just current performance [3][4] - There is a possibility of reaching $300 in earnings as the season progresses [4] Productivity and Margins - Margin expansion is expected to continue into next year, driven by productivity improvements and efficiency measures [5] - Companies need to achieve high return on equity (ROE) to maintain above-average valuations [5] Market Dynamics - A healthier bull market is anticipated, characterized by broad participation rather than speculation [6] - Earnings growth could reach 10-12%, with a mix of high-growth companies and others contributing positively [7] Sector Performance - Consumer discretionary sectors may see upgrades, particularly if lower rates provide tailwinds [8] - Small-cap stocks could benefit from a cyclical upturn, reducing reliance on Fed rate cuts [9] Investment Strategy - A suggested strategy includes pairing NASDAQ investments with small-cap stocks while potentially overlooking large-cap value [10] - The current macro backdrop is favorable for risk assets, including equities and credit [11][12]