Barron's Streetwise How Low Can We Go?
20 snips
Apr 11, 2025 
David Steinbach, Global Chief Investment Officer at Hines, joins to discuss market corrections and economic uncertainties. They delve into the bear case for the S&P 500, questioning the sustainability of current valuations. Steinbach highlights how global tariff pauses might impact demand. The conversation also navigates the evolving economic landscape post-COVID, emphasizing the importance of resilient supply chains. With a touch of humor, they use skiing metaphors to illustrate the need for adaptability in the unpredictable market terrain.
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Choose Your Own Adventure Analogy
- Jack Howe uses "Choose Your Own Adventure" books to illustrate Wall Street's price targets.
- He points out the frequent bad endings, mirroring unpredictable market outcomes.
Critique of Bear Cases
- Jack Howe criticizes Wall Street's price target predictions, finding bear cases often too optimistic.
- He questions JP Morgan's S&P 500 4,000 bear case, deeming it insufficiently pessimistic.
Gloomier Bear Case
- Howe argues that earnings could decline and valuations could revert to historical averages.
- This suggests a much lower S&P 500 potential bottom, around 3,132, not 4,000.
