“Meaningful pullbacks in equities have been few and far between since the late-October 2023 lows in the S&P 500. In the coming weeks and months, we believe the potential for more attractive entry points to increase exposure could very well materialize in both equities and fixed income. Be ready. Patience is a virtue. How many times have we heard that in our lifetimes? This strategist would suspect the answer from our regular readers would be “many, many times.” We have been promoting the idea of patience when it comes to the stock and bond markets for some time. Meaningful pullbacks in equities have been few and far between since the late-October 2023 lows in the S&P 500 Index (SPX). But based on Bloomberg data, and over the long history of the SPX, a 10% pullback occurs on average approximately every 10.5 months. So they do happen with a reasonable amount of frequency. The key, especially for long-term investors with a three to five-plus year time horizon, is to be patient and take advantage of pullback opportunities as they occur. Of course, that means having a plan in place to invest sidelined funds. Recall that our year-end 2025 target range for the SPX is 6,500 to 6,700, which we believe offers an attractive return, especially at entry points below the current level.”
Morten W. Langer
