Macro Volatility Vs Earnings: Why Earnings Matter More Than Valuations | Anshul Saigal

Anshul Saigal, CIO & Founder, Saigal Capital Advisors, says investors should focus on what they can control: owning quality companies at reasonable valuations. Addressing concerns over macro volatility and potential downside in the small-cap universe, Saigal says short-term market swings are difficult to predict but permanent capital loss can be reduced through portfolio quality and valuation discipline. He highlights earnings trajectory as the key factor determining stock performance over time. Saigal says recent quarterly numbers and company commentary point to an earnings uptick cycle. In his view, strong earnings can help markets absorb macro volatility, with stocks ultimately trending in line with the earnings trajectory. He also recalls how exiting small caps during a volatile period could have meant missing the subsequent rally, despite macro conditions remaining uncertain.