Mid-Year Market Musings

The big things you need to know:

• First, we review the bull thesis that we heard in client meetings last week, and our thoughts on where it could go wrong.
• Second, we review how the rally in equities has been looking a bit overdone on our valuation and EPS modeling, and how we’re also starting to run out of room on one of our sentiment studies.
• Third, conditions are rather mixed for US equities at the moment. We walk through things that look good, and things that look not so good. In the latter camp, one thing that stands out as particularly important to us is the failure of c-suite sentiment in widely followed surveys to inflect positively, as has been the case with consumer, small business, and investor sentiment surveys.