Bob Elliott
· Nonconsensus
· February 03, 2026 at 11:30
· ⏱ 4 min read
| Read on Substack ↗
Summary
=== SUMMARY ===
•The author is pivoting from a cautious to a bullish stance on US equities, marking a significant change in view after over a year.
•The core thesis is a disconnect: strong and improving fundamentals (economic data surprises, double-digit corporate profit growth) are not being reflected in recent flat stock market performance, creating a catch-up opportunity.
Summary
The author argues that despite a period of caution, the current environment for US stocks is the most positive it has been in some time. Equities have been flat even with a strong economy, robust earnings, and an easy policy path ahead, creating a favorable setup.
•US stocks have underperformed, remaining flat while other assets experienced a 'mania'.
•The author believes the current conditions for US equities are the most positive in a while, citing a stronger-than-expected economy and earnings.
•This marks a potential shift from the author's previous cautious stance on US stocks over the past year, which was based on concerns about growth policies and monetary policy.