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Looking for a way to trade on first quarter earnings? This strategist has a plan for you.
This earnings season is arriving in the midst of economic uncertainty - but it may be less of a problem than you think.
"The good news, I think, on earnings is that expectations have been set very, very low for this quarter," says Rebecca Patterson , chief markets strategist for J.P. Morgan Asset Management, Institutional. "People aren't looking for much," which creates a decent chance for an upside surprise.
Sure enough, as of Friday, 29 companies in the S&P 500 had reported first quarter earnings, and 83% of them beat expectations, Patterson told CNBC's Melissa Lee .
So how do you play the possibility of more pleasant surprises? It's complicated.
"Historically, if I thought I was going to have a good earnings season, I would buy Sweden," Patterson says. With so many large technology and telecom companies in the country and large foreign ownership, "it tends to act as a high-beta play on U.S. earnings season."
But these are not ordinary times in Europe, so Patterson is looking elsewhere. She likes what she sees in Canada.
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