RBC's Calvasina Likes Her 4,100 Target for S&P 500

Laurie Calvessina from RBC Capital Markets discusses the impact of the debt ceiling on market sentiment, particularly among non-US hedge funds. She provides projections for the S&P 500, suggesting a base case of 4100 by year-end, with potential short-term overshoots. Laurie highlights uncertainties in earnings outlooks, especially in financials, and notes that the tech trade may be losing momentum. The decision to chase market breakouts depends on the investor's time horizon.

What is one of the main reasons for the negativity among non-U.S. hedge fund investors towards U.S. equity markets?

• High inflation rates

• Debt ceiling concerns

• Trade tensions

• Rising interest rates

What is Laurie Calvessina's base case prediction for the S&P 500 by the end of the year?

• 4100

• 4300

• 4000

• 4500

What sector's earnings outlook is causing uncertainty despite a strong reporting season?

• Technology

• Healthcare

• Consumer Goods

• Financials

According to Laurie, what is crucial to consider when deciding whether to chase a market breakout?

• Interest rates

• Time horizon

• Market volatility

• Economic growth

Which sector does Laurie suggest might be losing its momentum as a market driver?

• Technology

• Real Estate

• Utilities

• Energy