The U.S. equity markets have seen quite a bit of volatility since our last update in early October. The macro stories that investors have been focusing on were shifting quite a bit. And once the calendar flipped to November, the headlines intensified. At times like these, it is even more important to have a disciplined investment process.

Despite the back and forth of markets, I have remained medium term constructive on equities and have repeatedly stated that based on our indicators and read on the macro environment, the most important underpinnings for even higher highs in the equity market are still very much in place:

The Fed has clearly signaled that they will be on hold for an extended period and the favorable liquidity environment will not be interrupted any time soon.The interest rate backdrop remains near record lows and supportive of equities.The earnings revisions data for the broad equity market, which has a big impact in our investment process, is still robust. It shows that the rate of change in the depressed future profit expectations that were consensus in late-March and early-April, is still getting less bad for the broad universe of names within the S&P 500 and the S&P 1500, as shown by our proprietary earnings metric that we call Analyst Sentimen...

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