Woods: Valuations were extreme, but that's just the headline for this selloff

Valuation Concerns - The sell-off in the market is attributed to extreme valuations, particularly noting Palantir's 250 times forward earnings as a significant concern [1][2] - The combination of valuation issues, government shutdown, and inflation are contributing factors to the current market sentiment [1] Government Shutdown Impact - The ongoing government shutdown is described as a significant event, with the Congressional Budget Office estimating a GDP impact of 0.1% to 0.2% for each week it continues [3] - The uncertainty surrounding the shutdown is affecting economic data interpretation, which is crucial for the Federal Reserve's decision-making process [4] Employment and Consumer Sentiment - Layoffs at major companies like IBM, UPS, and Amazon raise concerns about consumer sentiment and economic health, with McDonald's earnings being a key indicator for middle and lower-income consumers [5][6] - The upcoming unemployment numbers are critical for understanding the labor market, but their delay adds uncertainty to the Federal Reserve's data-driven approach [6] Stock Analysis: UPS - UPS is highlighted as a stock to watch, with analysts maintaining an overweight consensus and a price target above its current trading level [8] - Despite recent layoffs and a strong earnings report, UPS is seen as a candidate for mean reversion, with a target buy range identified between 90 to 92 [10][11]