As highlighted in Flying Smart, the market has been ripe for a correction, and the escalating Iranian conflict certainly offers a potential catalyst. Unfortunately, corrections only feel natural, normal, and healthy until they actually happen. While it is impossible to predict the next few hours/days, ultimately, the only reason to become truly defensive for anything more than a temporary correction is when there is significant worsening in our positive underlying core fundamental thesis. Our bullish view is driven by inflation, credit, economic activity, EPS and valuations, and despite the longest economic expansion in modern history, there has yet to be broad enough deterioration in credit that warrants anything more than a 5-10% tactical pullback from peak:

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