Hitting A Pause Button: Roundtable Follow-Up

25 Sep 2023

by Irene Tunkel, Chief Strategist

Bulls and bears have capitulated, and the majority of the clients surveyed expect a rangebound market in the near term. Our fair value PE NTM indicates that the S&P 500 is only modestly overvalued. The continued outperformance of the Magnificent Seven faces multiple hurdles. Meanwhile, fiscal spending is unlikely to create an impetus for another leg up in equity performance.

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BCA Research | US Equity Strategy

The US Equity Strategy, led by Noah Weisberger, advises investors on how macro regimes, fundamentals, and market dynamics shape risk and opportunity across US equities.

Contents

Executive Summary / Insight
Are Equity Valuations Consistent With The Level Of Interest Rates?
What Is The Outlook For Magnificent Seven Assuming Economic Slowdown In The Coming Quarters?
Why Are The Magnificent Seven Losing Altitude?
Just Stocks
Can Fiscal Spending Offset Softening Consumer Demand Over The Next Six Months?
Bottom Line
Recommended Allocation
Footnotes