Good Morning,
Happy Monday and first snow of the year for much of Michigan! It’s a special week as we celebrate Veterans Day tomorrow. To all the Veterans, thank you for your service. We wouldn’t be here without you!
Markets look to bounce back this morning after a rough last week. There appears to be an imminent end to the government shutdown as air travel pressures increase ahead of the Thanksgiving holiday. For what it’s worth, Polymarket projects an end to the shutdown this Thursday or Friday. Markets are higher on the news and it will be interesting to see what/when backdated October economic data is released. In general, I think the market set-up will take stocks higher into year end. This set-up includes: stronger than anticipated Q3 earnings, corporate buybacks beginning to resume, a likely rate cut in December (with more to come in 2026?), and some $7+ trillion in money market funds that could begin to be invested as rates comes down. I do think there are some valuation concerns in select momentum baskets and have been allocating more towards strong cash flow companies of late. This coupled with extending duration within high quality fixed income seems prudent. Please continue to reach out with questions/comments.
Attached, please find this week’s Market Strategy Radar Screen Report from John Stoltzfus, Chief Investment Strategist of Oppenheimer Asset Management.
Have a great week!