Earnings vs. GDP: Navigating Earnings Deceleration The latest financial reports indicate a concerning deceleration in earnings, as evidenced by downward revisions in EPS. This trend underscores the importance of seeking out companies with superior profitability, free cash flow, and interest coverage amidst an overall earnings slowdown. Furthermore, the contrast between earnings and GDP highlights the need for strategic investment decisions that prioritize sustained profitability. Although economic forecasts predict a looming recession, there is still potential for record-breaking earnings in the latter half of the year, making it crucial to carefully monitor and adjust investment strategies accordingly.