Still In A Spooky Place

Today inthe podcast, we take a deep dive into the outlook for the US equity market fromthe S&P 500 all the way down to Small Caps. Three big things you need toknow: First, we are sticking with our YE2023 S&P 500 price target of 4,250.Though upside risks remain, downside risks have grown, the outlook has becomecloudier and we don’t think the pause in the S&P 500 rally that we calledfor in early August is done yet. Second, we continue to believe that Large CapGrowth is in need of a tactical correction, but we also acknowledge itslonger-term fundamental appeal which is why we think the leadership transitionhas been so tough. Third, Small Caps remain intriguing from a valuation andearnings perspective, but have been dragged down by balance sheet concerns,rising bond yields, and lingering economic angst.