In a new note to customers published on Friday, the BMO investment chief strategist, Brian Belski – one of the most loyal bulls on the street which was quick to recall the market turnaround in 2022 – argues that the uncertainty and fear of this market moment are not a reason to explain your point of view on the markets and the economy.
“Given the increase in negative jokes and many macro forecasts revised downwards, we were flooded by customers not only of our opinion, but more directly – why we do not change our point of view,” wrote Belski.
In addition to not knowing the process of other companies and asserting that the company’s specific trends are extrapolated on the broad market, Belski has added: “Unfortunately, uncertainty generates an emotion, which comes from fear. … To be frank, we think it is inappropriate to change forecasts for uncertainty and fear.”
Thursday, the S&P 500 (^ GSPC) entered the correction territory, defined as a 10% drop in recent summits.
“We know that the corrections do not necessarily equivalent to the authorization markets,” added Belski.
More broadly, Belski sees the way in which the market has acted in the past two years – essentially increasing tirelessly in the middle of AI enthusiasm and surfing the wave of a strong economy – as having set us up for the current moment of instability.
Here is Belski, with the quotation of money on the place where things are in the mind of his team while we head towards the end of a difficult week for the markets:
