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Nothing can stop this equity market, says Manulife's Emily Roland
CNBC Television· 2025-10-07 18:50
Market Momentum and Valuation - The market is driven by momentum and technicals, with relentless dip buying [2] - Valuations are high, with markets priced at almost 23 times forward earnings, indicating potential overvaluation [2] - The risk is that there is no risk, suggesting a potential bubble [10] Earnings and Growth - US earnings are strong, driven by high-quality companies with the best earnings revisions [3] - Speculation is more prevalent overseas, with MSCI EA up 30% in US dollars on 1% earnings growth, and Chinese stocks up almost 40% on 0% earnings growth [3] - AI is a significant factor in current earnings growth, raising concerns about the economy and market performance without it [5][6] Investment Strategy - The firm is participating in the market but owning higher quality stocks with better balance sheets within the technology sector, staying away from more speculative corners [7] - The firm favors midcaps due to their different sector composition (industrials and regional banks) and a 30% discount [10][11] - US midcaps are considered one of the only places to find value, as international stocks are no longer cheap [14] Risks and Concerns - The potential bursting of a bubble due to excessive froth is a key risk [10] - Over-reliance on AI for earnings growth is a concern [5][6] - Small caps are viewed with concern due to profitability and debt levels [14]
X @Ansem
Ansem 🧸💸· 2025-09-30 17:27
technicals wise i can see why you'd take both of these trades, how this resolves over the next couple of weeks will determine trend of Q4 imo, so regardless of whether you're bullish or bearish have invalidations for your reasoningi dont think 4k holds this week https://t.co/F9vNi6qvWPAnsem (@blknoiz06):https://t.co/h9D5bTrYLQ ...