HSBC Holdings Plc strategists, including Kettner, argue that robust earnings growth and attractive valuations are key pillars keeping risk assets resilient despite a more difficult inflation environment. The bank's analysis highlights that corporate profitability continues to expand at a healthy pace, providing fundamental support for equity and credit markets.

Even as central banks grapple with sticky price pressures, the combination of solid bottom-line performance and reasonable pricing cushions portfolios against volatility. The strategists emphasize that current valuation metrics are not stretched, leaving room for further upside if earnings momentum persists.

This perspective contrasts with more cautious narratives that focus solely on monetary tightening risks. The team notes that while inflation remains elevated, the earnings backdrop offers a countervailing force that has so far prevented a deeper selloff in risk assets.

Bloomberg Markets reports that HSBC's outlook underscores the importance of monitoring both profit trends and valuation levels when assessing market durability in uncertain macro conditions.