Multiple Expansion Driving Stock Market Returns in 2023

Multiple Expansion Driving Stock Market Returns

Companies began to report their quarterly earnings last week. Estimates for the S&P 500’s earnings are still forecasted to decline over 6%, which would mark the third consecutive quarterly decline. We will be watching earnings guidance closely for the second half of this year and 2024.

In this short video, Ross Bramwell discusses how the stock market’s return this year has been driven largely by price-to-earnings multiple expansion. Future returns on stocks may be challenged in a higher-for-longer rate environment unless the earnings outlook improves.

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Ross Bramwell, CFA


Ross joined Homrich Berg in 2013. He has 20 years of experience across the accounting, financial services, and investment industries. Currently, he serves as a member of the Homrich Berg Investment Committee and manages the firm’s real estate platform. Ross leads the due diligence efforts within real estate which covers commercial real estate, such as multifamily, office, industrial, retail, among others, as well as residential. He also takes the lead on client communications and presentations that focus on the economy and markets. He often participates in client meetings to discuss investment allocations, the markets, and private alternatives.