Economic Transformation and Market Positioning

The current market environment is characterized by an ongoing bear market, driven by significant economic transformations. This shift is anticipated as the U.S. economy transitions from reliance on government and high-income spending to a more balanced, private-sector driven economy. Such a foundational change creates market difficulties, as evidenced by the adjustment of growth expectations and increased inflation outlooks. As markets recalibrate, this period of decline is not only expected to lower expectations for sales and earnings but could ultimately position the market for a recovery once these transitions stabilize.