Potential September 2025 rate cut should help boost sentiment, says Solus' Greenhaus

Market Outlook - The market is anticipating the upcoming earnings season, particularly from banks, amidst concerns about tariff threats [1] - The market is considered well-aware of potential tariff impacts, though a short-term breather is expected to assess the actual tariff rates [2][3][6] - A historic rally of 26% in the US stock market post "Liberation Day" lows suggests a need for digestion [7] Valuation and Sector Analysis - The market is generally expensive compared to its historical valuations [8] - The "Mag Seven" stocks contribute to higher market valuations due to their deservedly higher valuations [9] - Other sectors are expensive but not as much as technology, reflecting different growth rates [10] - It's difficult to identify clear bubbles in the market currently, although potential over-expenditure in AI CapEx by the "Mag Seven" could become one [11] Tariff Impact - Initial tariff headlines caused significant concern, but the market rallied as the extreme scenarios seemed less likely [4] - Renewed discussions by the president about higher tariff rates are expected to increase the overall US tariff rate [5]