Market Trends & Investment Strategy - Investors are not afraid of risk and are buying risk in the later stage of the bull market [1][2] - Investors are focusing on growth around the secular AI story and cyclicals due to leverage to the real economy [2] - Equity markets have priced in over 10% compound annual growth in earnings for the S&P 500, leading to a more balanced upside and downside [4] - Risk is expected in 2026, with symmetrical downside days expected after big upside days, but still with a tilt to the upside [5] - Sentiment is high, and without new news, markets tend to grind higher, but any negative news could cause choppiness [10][11] Company Focus & Performance - Boston Scientific (a medtech company) is a way to balance the AI-related tech exposure [6] - Boston Scientific is expected to expand gross margins by 0.5%, net margins by 1%, and improve efficiency [7] - Boston Scientific is getting great incremental cash returns on its capital expenditure (capex) and research & development (R&D) investments [8] Short-Term Outlook - It's uncertain whether the Santa Claus rally will occur [10][11]
Fully valued market needs fundamentals as leadership broadens, says Citi’s Drew Pettit
CNBC Television·2025-12-23 12:23