Why Jefferies' David Zervos is still 'strongly bullish'

Market Outlook - Jeffre's chief market strategist David Zervos holds a bullish view on the equity market, citing an incredible earnings outlook and investment horizon driven by policy changes such as deregulation, tax reforms, and tariffs encouraging domestic investment [3] - Zervos believes current monetary policy is too restrictive, creating headwinds, particularly in interest rate-sensitive sectors and the labor market [4] Monetary Policy & Fed - The market perceives the Federal Reserve's (Fed) rate cut as cautious, lacking clear forward guidance for future cuts [5] - Zervos suggests upcoming changes in the Federal Open Market Committee (FOMC) membership, with potential new members holding supply-side views, could shift the Fed's approach [6][7] - The new members may challenge the existing "group think" within the Fed, potentially leading to a less politically influenced monetary policy [7] Valuation - Valuation is subjective, with varying perspectives on the equity market [2] - Traditional models at the Fed may not fully account for the positive impacts of policy changes on the equity market [3]