The market setup is quite positive over the next 6-12 months, says BNY Wealth's Alicia Levine

Market Overview - The Federal Reserve's minutes are being analyzed for insights on interest rate paths, with major market averages remaining less than 1% from all-time highs [1] - Current market conditions suggest a period of digestion, but fundamentals still support market appreciation due to increased earnings estimates and better-than-expected growth [2][3] Economic Indicators - Liquidity in the market and rising earnings, alongside Fed rate cuts, have contributed to positive equity performance since the selloff on August 1 [4] - Expectations indicate a potential market "melt-up" towards the end of the year, although pullbacks may occur due to volatile news cycles [5] Investment Strategy - The market's future trajectory hinges on the absence of a recession, with no recession anticipated in the near term [6] - Investors are advised to invest at regular intervals rather than attempting to time the market, as the setup for the next 6 to 12 months appears favorable due to supportive monetary and fiscal policies [7] Fiscal Policy Impact - Upcoming fiscal stimulus of approximately $150 billion in early 2026 is expected to support lower-income earners and corporate tax breaks, which may help stabilize the economy [7] Inflation Concerns - While the current economic setup could be inflationary, increasing productivity may counteract inflationary pressures [8] - The market's performance is influenced by consumer cyclical groups, which have shown some faltering, indicating potential underlying issues in the economy [10][12] Corporate Performance - Despite concerns about consumer spending, many retailers reported better-than-expected performance, suggesting resilience in the consumer sector [10][11] - The earnings contributions from various sectors are expected to broaden, indicating a healthy market environment as long as recession signals do not emerge [13]