Everyone’s Bracing for a Crash. The Economy Says Otherwise.

Franklin Templeton's Galipeau says earnings strength, not recession fears or AI bubble worries, will keep driving markets through 2026-28.

• Earnings, not headlines, drive stocks: S&P 500 is up 13.5% YTD despite oil rising from $65 to above $100 and long rates up 100bps; Galipeau says earnings growth, not rates or headlines, is the dominant variable.
• AI ROI is showing up: Roughly 25 S&P 500 companies gave discernible AI ROI figures in Q2, which Galipeau calls "the first inning"; Walmart reportedly said AI could sustain revenue growth without adding headcount.

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