As market volatility continues, I wanted to take a minute to share some thoughts.  Also, a handful of the companies on my Dunk list have released their earnings results this week. 

Yesterday, equity markets began on a down note following Meta’s profit report last night, which spilled over and negatively impacted Tech and related names.  As the day progressed, the indexes kept bleeding down and closed near their lows.  Not a fun day for any investor who had long exposure, but I wanted to remind investors that price action like yesterday, which was extreme and overdone in some areas based on my analysis, potentially creates opportunities for ideas that have gone on sale. 

With that being said, I wanted to reiterate that my two main big picture views for the equity market and positioning have not changed despite the ongoing turbulent price action.

  • 1H22 is likely to be challenging
  • However, we do not see this choppiness as an end move, but a healthy pause/consolidation within a bull market that sees equity indexes higher at year end compared to where they started
On a sector basis, I continue to recommend above neutral positioning in Technology, Consumer Discretionary, Energy, and Financials and below neutral exposure for Utilities and Staples (p...

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