The Financial Post reports in its Thursday, July 24, edition that signs of stock-market complacency are appearing as a rapid equities rally coincides with increasing earnings downgrades, according to JPMorgan's quantitative strategists. A Bloomberg dispatch to the Post reports that stocks have rebounded from April's slump faster than after the COVID pandemic, with the MSCI World index reaching record highs. However, global earnings revisions show downgrades outpacing upgrades significantly, noted the team led by Khuram Chaudhry. JPMorgan analysts say: "There appears to be an environment of bullish sentiment, speculation and a growing air of complacency. Either sell-side analysts are about to start a new round of upward revisions or the market is at risk of suffering a period of increased volatility and drawdowns. Something has to give." Net revisions for global earnings have slid 14.3 per cent on a one-month basis and 18.7 per cent over three months. For now, the U.S. shows fewer cuts, thanks to strength in sectors like technology, they say, while regions such as Asia and Europe face accelerating earnings-per-share downgrades. Guidance in Europe has been weak, given the uncertainty around tariffs.