Could see market upside through year end but it may be choppy, says iCapital's Sonali Basak

Market Outlook - The market is currently around fair value, suggesting potential upside but with expected volatility as the year ends [1][2] - Data collection issues may impact upcoming government data releases, particularly for October and November, leading to investor nervousness [2][4] Earnings and Company Performance - Nvidia is anticipated to report significant orders, with expectations of a $500 billion order announcement, which could influence market performance [3][4] - Meta has been a drag on EPS despite a healthy earnings environment, raising concerns about accessing AI themes without stock market volatility [9][10] Capital Expenditure and Cash Flow - The ratio of capital expenditure to free cash flow is currently around 70%, with expectations it could rise to 75-80%, raising concerns about negative free cash flow for some firms [10] - The financing of the capital expenditure boom will be a significant narrative moving forward [10] Sector Performance - The composition of the "Magnificent 7" stocks is shifting, with some laggards catching up while top performers are falling behind due to changes in capital expenditure dynamics [13][14] - Financials, despite showing 20% EPS growth, are trading 13% below the S&P 500, indicating potential for further growth in this sector [15]