IG Wealth Management’s Chief Investment Strategist, Philip Petursson reviews the most recent earnings season. This is when companies report their quarterly revenue (sales) and earnings (profits). Philip explains the difference between the two, how disappointing revenue can still result in increased earnings, which sectors were this season’s winners and losers, and what needs to happen for S&P 500 stocks to continue to increase in value.

It’s easy for market participants to get obsessed with tiny details, says IG Wealth Management’s Chief Investment Strategist, Philip Petursson. Right now, it’s an obsession with the U.S. Federal Reserve’s next move on cutting rates, which would require an acceptance that the economy is weakening. At the same time, however, markets expect earnings to grow by 10% over the next 12 months, suggesting a strong economy. Given this paradox, Philip says that now is the time to step back from the minute details and focus on what is currently crucial for investment portfolios.

On Monday, Japan’s Nikkei index saw its worst two-day drop ever, having reached an all-time high just three weeks ago, says Ashish Utarid, Assistant Vice-President, Investment Strategy. While several factors were in play, one in particular seemed to spark this extreme volatility: the carry trade. Ashish explains how a carry trade works, how it’s at risk from currency fluctuations and what you can do to help protect your portfolio from this kind of volatility.