Brandon Thurber, chief market strategist at Regions Asset Management, says that despite a prevailing sense of nervousness, the market can remain on its upswing, and is likely to see a pickup after mid-term elections and lasting at least through the first quarter of 2027. With interest rates on the rise, Thurber says the market's potential for growth hinges largely on the power of earnings, but he notes that earnings estimates are surprisingly stable, which should set up a constructive tailwind for the market. In addition, while he acknowledges the market's concern over rising bond yields, he says the reason for those increases is crucial, because if strong economic growth is driving rates up, "that continues to be a fairly constructive backdrop for risk assets."
Legendary technical analyst Martin Pring of Pring Research, says the statistics suggest that "the economy down the road will look pretty nice," leading to "an expanded expansion" that can continue while rates are rising. Pring, who has published Intermarket Review since 1984, says that the economy is currently in "Stage Four of the cycle, when bonds are bearish, commodities are bullish and stocks are bullish." He expects the Fed's recent hikes to be the first of as many as six increases over the next year-plus, noting that creating a recession is how he expects central bankers to break inflation. Until that happens, however, he notes that "Trend trumps everything," and he will continue to be invested while the bull market remains intact.
Nathan Shetty, chief investment officer at SEI, says that alternative investments have been de-emphasized by the media and investors amid the raging success of traditional equities, but says that sticky inflation and unpredictable interest rates are creating opportunities for investors to use alternatives to complement equity strategies, mitigate risk and achieve true diversification. Shetty notes that as he watches current market trends, he is "not anti-A.I., but pro-productivity," looking past the A.I. eco-system to the businesses that benefit from the evolving technology.