Markets Pricing In a Soft Landing, Barrett CIO Kong Says

The video discusses current market trends, highlighting the impact of the recent jobs report and Powell's comments on disinflation. Despite expectations of rising rates, the market is buoyed by a strong underlying economy, leading to a rebound in growth stocks, including tech. The conversation shifts to the market's pricing of an earnings recession, noting a soft landing scenario. Earnings estimates for Q1 2023 have decreased, yet the market continues to rise, with the S&P's forward PE ratio reaching 18 times. This raises concerns as the market approaches the upper bound of the bear market range observed last year.

In what way does the market's behavior typically precede earnings revisions, according to the text?

What is the significance of the S&P trading at the upper bound of the bear market range?