Sosnick: Seasonality is a fickle friend

Group 1 - Seasonality in the market can be unpredictable, with December being noted as one of the best months historically, but it does not guarantee positive outcomes every year [1][2] - November was a challenging month, with minimal trading volume and a late-month rally barely pushing the market into positive territory [2][3] - Current S&P 500 price targets for 2026 average at 7580, indicating a generally bullish outlook among banks [3] Group 2 - There is a prevailing consensus that AI will lead to significant profitability, but skepticism exists regarding the actual financial outcomes for companies investing heavily in this technology [6] - The current market sentiment suggests that the easy profits have already been realized, indicating a potential retrenchment in certain sectors, reminiscent of the internet bandwidth buildout [7] - The healthcare sector performed well recently, and there is an expectation that the market will broaden beyond a few leading stocks, allowing for a more diverse investment landscape [8][9] Group 3 - Investors are encouraged to focus on companies with solid earnings, dividends, and cash flows rather than speculative hype, as this approach is deemed more sustainable [11] - The market is currently experiencing a shift where investors are looking beyond a small group of dominant stocks, which is seen as a positive development [10]