Julian Emanuel Explains Why Markets Can Still Move Higher

The global equity markets have demonstrated a remarkable capacity to absorb shocks that would have triggered sharp selloffs just a few years ago. Recent volatility stemming from Middle Eastern tensions has been quickly absorbed by equity indices, with investors shifting focus back to fundamentals rather than headline risk. This resilience signals something more profound: market participants are increasingly confident in underlying economic strength and corporate profitability trajectories, a dynamic that has significant implications for European investors positioning capital in African markets. According to analysis from major institutional strategists, the current market environment reflects a fundamental shift in how investors price geopolitical risk. Where previous conflicts or regional tensions might have prompted broad portfolio deleveraging, today's markets are treating similar events as temporary disruptions rather than systemic threats. This confidence is underpinned by robust earnings expectations, with equity markets pricing in double-digit earnings growth across major indices. For European investors, this signals that the traditional risk-off trades may no longer provide the protection they historically did. The mechanism driving this resilience deserves closer examination. Corporate earnings growth remains the primary driver of equity valuations, and consensus forecasts continue to anticipate healthy profit expansion across sectors. Even when geopolitical concerns create short-term