This Indicator Has Not Grown So Much Since 1950

Summary

• Despite recent volatility, the S&P 500 remains resilient above 6,000 points, with major banks revising targets upward, supporting a bullish outlook.
• AI investments are driving record GDP contributions, and a resilient labor market suggests potential for further gains and possible interest rate cuts.
• Systematic funds remain under-allocated to equities, and hedge fund positioning could trigger additional market upside if positive momentum continues.
• While risks exist from foreign outflows and service sector weakness, I recommend buying US index assets due to strong risk-return potential and favorable seasonality.

Joseph Clark

Investment Thesis

I recommend buying assets that track major US indices. Despite the volatility of tariff policies, the escalation of the war between Russia and Ukraine, and the clash between President Trump and Elon Musk, the S&P 500 ended last Friday

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.