Published research this week leans firmly bullish on US equities, though a vocal minority is calling for a correction.
The bull case, laid out across several research notes, rests on standout earnings (88% of S&P 500 names beating estimates), market breadth widening beyond mega-cap tech, and soft labor data effectively pricing out rate hikes — which one camp of analysts calls "great for risky assets." A more aggressive published view sees the S&P 500 reaching 8,000 by year-end.
The bears are not quiet. A contrarian thread of recent research flags the Buffett indicator at all-time highs and argues a 20% correction is "overdue." Others cite stretched valuations heading into a seasonally rough Q4 and late-cycle signals as reasons to move underweight.
Sector-wise, the published consensus favors Financials, with some adding Insurance and Healthcare. Tech is where researchers openly disagree: one camp sees an AI-driven, higher-quality rally ahead, while others view semis and large-cap tech as cyclically extended and due to underperform.