Earnings environment is very different now than in the 90s, says RBC's Lori Calvasina

Market Sentiment and Valuation - Current market conditions are being compared to the late 1990s, with a suggestion that investors should position themselves similarly to October 1999 [1] - Smaller cap stocks, particularly the Russell 2000, are experiencing a breakout, indicating a potential shift in market dynamics [1] - Valuation charts for the S&P 500 show similarities to past peaks, but the top 10 names in the S&P 500 and NASDAQ 100 have not yet reached the highs seen during the tech bubble [3] Earnings Environment - The current earnings environment is significantly different from that of the late 1990s, leading to mixed opinions on whether the market is in a bubble [4] - Concerns exist regarding the speed of market movements and valuation levels, with some analysts suggesting that the market may be overextended in the short term [8] Investor Sentiment - There is a prevailing weariness and concern among investors regarding stock market valuations and the AI trade, indicating a cautious outlook [7] - Despite negative sentiment among many investors, this could be interpreted as a bullish sign, as widespread negativity often precedes market rallies [10] - Consumer sentiment indicators show subdued levels, but expectations for stock market growth over the next year remain positive, suggesting some underlying bullishness [12][13]