Navigating the risk of a market correction: The Investment Committee weighs in

Summary

The Investment Committee debates whether markets are at risk of a correction, citing seasonal midterm weakness, Fed hawkishness, high oil, and rising yields as near-term risks while noting earnings remain strong. Panelists are cautious about adding new capital, with some favoring technology and AI as key supports. Stephen Weiss reveals he is short QQQ and VOO, and the group discusses oil as likely to stay elevated with no clear off-ramp.

• Host opens with markets down across the board as Brent trades around $101, WTI above $96, and the 10-year yield is near 4.85%.
• Scott Rubner and RBC are cited for rising near-term correction risk from buyback blackout, option expiry, quarter-end, and geopolitics.
• Joe Terranova says risk/reward has changed but he would not turn bearish; any new buying should be done very lightly.
• Carrie Firestone sees stocks priced for perfection, a more hawkish Fed, a stretched consumer, and the 10-year yield headed toward 5%.
• Bryn Talkington expects a historical midterm drawdown but says the market is usually positive from November through February and advises riding through volatility.
• Scott Wapner cites JPMorgan's view that the momentum factor unwind is likely complete, reducing downside risk to the overall market.
• Stephen Weiss is short QQQ and VOO, sees the AI trade as key market support, and believes there is no off-ramp for lower oil prices.