Mid-year Market Review - "Soft Landing" Scenario Playing Out

The U.S. national debt recently crossed the $40 trillion threshold, prompting a flurry of headlines across financial media. While the specific amount is more psychological than ominous, a number this large is difficult for most of us to comprehend. What’s more, there are few signs of this debt snowball slowing down. Why does the national debt continue to rise, and what does it mean for investors?

Just as last season's record doesn't determine what happens this fall, year-to-date bond returns tell us very little about the returns investors can earn from this point forward. In fact, the rise in rates hurting bond prices this year has also improved the outlook for future returns.

A closer look at this quarter's corporate earnings results reveals a few important details lurking beneath the surface.