The market bull run continues: The committee's next move

Summary

The Investment Committee panel discusses rampant bullishness in markets, driven by durable economy, record earnings breadth and margin expansion, favorable fund flows, and massive AI capex. They point to strong corporate management, low institutional positioning, and rising earnings revisions as reasons to stay long. The S&P 500 Equal Weight hitting new highs is highlighted as a validation of broad participation. Upcoming CPI is seen as a risk, but the downside from possible rate hikes is considered limited, favoring continued bullish exposure.

• Goldman's Tony Pasquarello cites solid foundation: durable economy, superb earnings, favorable flows, $1T AI capex
• Josh details 32% S&P 500 earnings growth, margin upside, and broad sector profit growth countering narrow-market fears
• Joe highlights market resiliency through stress tests (rates, deleveraging, oil) and cleaner positioning
• Scott flags S&P 500 Equal Weight new high as key bullish indicator to monitor for market health
• Joe adds that accelerating earnings revisions and improving balance sheets (debt/equity down) support a continuation of gains
• Robbie notes institutional positioning at 37th percentile, not stretched, which will pull buyers in and could push S&P 500 toward 8000
• Joe argues bearish case only offers 5–10% downside and dip buyers would quickly re-enter, making risk/reward attractive for longs