The market can continue to grind higher into year-end, says Voya's Barbara Reinhard

Market Assessment - The market experienced a slight correction, but excessive speculation is not evident [2] - Continued strong earnings growth and government reopening suggest the market can continue to grind higher into the end of the year [3] - A pullback of less than 5% is not significant [4] - The market hasn't had a 25% pullback since April [4] - Bubblelets in areas like gold and Bitcoin are unlikely to significantly impact the broader market due to strong EPS and earnings growth [5] Risk Factors - Fed tightening is a major risk factor that could lead to market corrections of 20% or more [6] - Exogenous shocks to the economy, such as tariff announcements, can also trigger market downturns [6] Investment Strategy - The S&P 500 is expensive at 23 times earnings, but the equal-weighted index is at 17 times earnings, which helps keep the market in check [7] - Emerging markets and healthcare sectors present alternative investment opportunities [8] - Foreign investors are still buying US assets [9] Market Comparison - The current market situation is more similar to 1997 or 1998, with potential for further capital spending boom [11] - Unlike the tech bubble of the late 1990s and early 2000s, companies now have earnings to support their valuations [10]