A note from an analyst at UBS on Firday says its 'Goldilocks' time for US equities.

The positives for equities include:

  • economic growth,
  • ongoing disinflation,
  • Federal Reserve rate cuts to come (UBS forecast the first cut in May)

Says that while "much of this good news is priced in and valuations look relatively expensive" that "doesn’t prevent more upside”

  • because while the benchmark S&P 500 is expensive relative to historical levels (but are cheap outside of large-cap growth & tecn stocks), valuations are a “poor predictor of market reversals”
  • the stock market is currently in a ‘Goldilocks’ stage
s&p 500 forecast 2