Barclays continues to favour US equities, citing three tailwinds for shares forward:

First, a lot of the rise in valuations is earnings pushed.

At the same time as NVDA has pole-vaulted to turn into a $2trn-plus firm, its P/E a number of to ahead earnings has come down sharply.
Earnings haven’t solely justified bullish consensus forecasts, however have exceeded them in latest quarters. The identical is true collectively of Huge Tech; a lot of the fairness rally relies on higher earnings, not a number of growth, particularly after final week’s wobble in markets.

Second is the macro outlook

We count on the U.S. jobless price to peak at simply 4% and with out web job losses this whole enterprise cycle. If that is as dangerous because it will get, it’s a very benign trough, particularly when an easing cycle isn’t very distant.

Three, when U.S. equities hit a file excessive, it is extremely uncommon for them to tug again for the remainder of the 12 months;

the elements that drove the rally normally maintain going. Additional, there are sectors and geographies the place the upside is but to play out totally.”

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A down day right now, however purchase the dip has been the catchphrase for a very long time now: